VS Energy wins auction for 50% in Zakarpatoblenergo

An affiliate of VS Energy was named the winner of a rescheduled privatization auction for a 50% stake in Zakarpatoblenergo (ZOEN UK). Just like with the auction of 50% in Vinnitsyaoblenergo (VIEN UK) held earlier in the day, there were two contenders: VS Energy and Energy Standard Group. After three rounds of bids, the VS Energy affiliate won for UAH 140.7 mln, up 4% from the auction’s starting price. The implied deal price, UAH 2.26 per share, was 2x higher than the last offer and 3.8x higher than the last market deal price.

Alexander Paraschiy: There were no suprises in either of yesterday’s auctions, with minority stakeholders recognized as the winners. Both auctions seem successful from the standpoint valuations: implied EV/EBITDA 2011 was 5.3x for Zakarpatoblenergo and 5.6x for Vinnitsyaoblenergo (the latter accounting for UAH 200 mln in debt payable to the budget). As a result of yesterday’s auctions, VS Energy holds controlling stakes in six of 27 Ukrainian regional distribution companies (Oblenergos), while Energy Standard (together with Privat Group) has control of five.