Ukraine prosecutor seeks to cancel Donbasenergo privatization tender

Ukraine prosecutor seeks to cancel Donbasenergo privatization tender



12 лютого 2014 года
Конкорд Капитал

Донбассэнерго (DOEN)


The Prosecutor General of Ukraine filed a lawsuit demanding to cancel the results of the privatization tender of power generating company (GenCo) Donbasenergo (DOEN UK), the Ukrayinski Novyny news agency reported on February 11, citing an anonymous source in the Kyiv Administrative Court. According to the source, prosecutors are seeking to recognize as invalid the Cabinet of Ministers resolution that stipulated the conditions for Donbasenergo’s privatization, as well as all the related directives of the State Property Fund that sold the 60.8% stake on August 22, 2013. Energoinvest Holding, a company related to Party of Regions MP Ihor Humeniuk, was declared the winner of the August tender, with its bid of UAH 719 mln.



Alexander Paraschiy: Given the current political context in Ukraine, we believe the lawsuit may have a political pretext. In particular, we interpret it as pressure on those Party of Regions MPs who might be considering cooperation with opposition MPs in forming a new reform-oriented majority. In fact, this can also be a signal to Rinat Akhmetov, the owner of the earlier privatized Zakhidenergo (ZAEN UK) and Dniproenergo (DNEN UK) GenCos and the widely recognized sponsor of a big group of MPs (possibly about 40) within the Party of Regions parliamentary faction.



Except for the fact that Donbasenergo was sold at 2x smaller multiples than the earlier privatized GenCos, and that its tender only allowed for the participation of big local energy market players, all the other parameters of the Donbasenergo deal coincided with the tenders for Zakhidenergo and Dniproenergo.



We do not expect any market reaction to the news – the story of Donbasenergo as a potentially hefty dividend payer this year remains valid, whoever the ultimate owner is.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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