Ukraine sells 25% stake in Zakarpatoblenergo for UAH 255 mln

The State Property Fund of Ukraine (SPF) sold a 25% stake in the small power distribution company Zakarpatoblenergo (ZOEN UK) for UAH 255 mln, the Fund reported via its Nov. 26 press release. The starting price of the stake was UAH 67 mln. There were six candidates at the tender, according to the SPF. The two most actively competing parties were Biznes-Invest and FK Favorit, with the latter being declared the winner, the UNIAN news agency reported.



The tender’s winner is an affiliate of the company’s majority shareholder, according to anonymous sources cited by the Interfax-Ukrayina news agency. In February 2012, SPF sold a 50% stake in Zakarpatoblenergo for UAH 141 mln to a company affiliated with VS Energy, a holding company controlled by Russian businessman Alexander Babakov.



The SPF is planning to convene tenders to sell 25% stakes in power distribution companies Vinnytsiaoblenergo and Chernivtsioblenergo on Nov. 27 and Nov. 28, respectively. It is also planning to sell 10% of power GenCo Centrenergo (CEEN UK) and 5% of fertilizer producer Odesa Portside Plant in December.



Alexander Paraschiy: The Nov. 26 privatization deal is the most successful for the SPF in 2014, contributing the most to Ukraine’s privatization revenue thus far. In 10M14, the Fund was able to get total proceeds from privatization of just UAH 60 mln. The state’s privatization plan for the entire year was UAH 17 bln. If the following tenders will be as successful as the latter one, Ukraine might get up to UAH 1.5 bln from privatization this year, though that will still fall short of plans.



The implied multiples of the deal are record high, as for the sector: EV/S of 2013 is 1.1x, EV/EBITDA of 2013 is 7.9x. The SPF attributed its success to the large number of contenders. The name of the second competitor, Biznes-Invest, is similar to the name of a company that the media have linked to Igor Kolomoisky – a company that actively resisted the privatization of power GenCo Dniproenergo by DTEK in 2007. We believe it participated in the tender just to inflate the price and make the Russian businessman pay more.

Источник: Конкорд Капитал