VS Energy and Energy Standard bid for Zakarpatoblenergo

Two companies submitted bids to privatize a 50% stake in Zakarpatoblenergo (ZOEN UK) in an auction scheduled for Friday, the State Property Fund announced last week. Interfax, citing undisclosed sources, said the bidders are an affiliate of VS Energy (holder of a 25% stake in the company) and electricity distributor Luhansk Energy Union of Energy Standard Group.

Alexander Paraschiy: We are confident VS Energy will win the auction for Zakarpatoblenergo and believe Luhansk Energy Union is not a true contender for the stake, just like in last week’s auction for Donetskoblenergo (DOON UK), for which Luhansk Energy Union filed the paperwork to bid and DTEK won for just 4% more than the starting price. We believe the four current major players on Ukraine’s electricity distribution market – DTEK, VS Energy, Energy Standard Group (Privat Group) and Grigoriy Surkis’ business group – have already informally agreed on who is going to privatize which electricity distribution stakes being offered by the government, and there will be no real competition at the auctions.