Zakhidenergo to pay UAH 0.52 DPS

Shareholders of power GenCo DTEK-Zakhidenergo (ZAEN UK) will vote for the distribution of 30% of the company’s net income, or UAH 6.65 mln, in dividends, according to a proposal raised at their April 24 AGM that the company made public on its website. If the proposal is approved, shareholders will receive UAH 0.52 per share in dividends, implying a 0.6% dividend yield. In addition, shareholders will vote to approve significant deals that the company may enter into in the future.

Alexander Paraschiy: The revealed proposal is fully in line with Zakhidenergo’s AGM agenda and our expectations (see our news for DNON and DNEN from April 16). Given that the liquidity of Zakhidenergo stock has nearly evaporated, and that the company is unlikely to pay hefty dividends in the mid-term, we see the company’s AGM as an excellent opportunity to exit its shares. We estimate that shareholders voting against significant deals will be able to offer their shares to Zakhidenergo at no less than UAH 85.35 /share, which is slightly above the current market price.