REUTERS
The Ornex company, which is part of Ukrainian tycoon Rinat Akhmetov's System Capital Management (SCM), has bought a blocking stake in DTEK Dniprooblenergo, a power distributor in Dnipropetrovsk region, from the Ukrainian government for UAH 1 billion, or about US$39 million, according to the State Property Fund of Ukraine (SPF).
The price was twice the starting price, which was set at UAH 490.055 million, the SPF said.
Some 1,497,906 shares were sold.
The August 31 auction was conducted via the PFTS exchange. There were two bidders.
DTEK Group, another business unit of Akhmetov's SCM, already owned 51.56% of shares in DTEK Dniprooblenergo before the deal.
In addition, the SPF also sold a 25% stake in DTEK Dniproenergo where Akhmetov's DTEK owns over 72%. The buyer was also Ornex. The stake consisting of 1,491,859 shares was sold at a starting price set at UAH 728.236 million. The auction was also held on the PFTS.
Read alsoUkraine's property fund sells 25% stake in Kyivenergo As UNIAN reported, the SPF earlier announced that it would sell 25% of state stakes in eight energy companies in the middle of August: Odesaoblenergo, Donetskoblenergo, Donbasenergo, Sumyoblenergo, DTEK Dniproenergo, DTEK Dniprooblenergo, DTEK Zakhidenergo, and Kyivenergo.
The sale of Odesaoblenergo, Sumyoblenergo, and Donbasenergo failed due to the lack of bids.
The SPF sold a 25% stake in Donetskoblenergo on August 16 and a 25% stake in Kyivenergo and DTEK Zakhidenergo on August 18. All the assets were acquired by Ornex.
According to DTEK's annual report for 2016, it owned over 72% of shares of DTEK Zakhidenergo, over 72% of shares of Kyivenergo, over 71% of shares of DTEK Donetskoblenergo, and over 72% of shares of DTEK Dniproenergo.
UNIAN memo. DTEK Dniprooblenergo supplies power to households in Dnipropetrovsk region, eastern Ukraine. Its owners are Cyprus-based DTEK Holdings Limited with 51.6% and Larva Investments Limited with 15.9%.
In turn, DTEK Dniproenergo owns and operates 25 power units at Zaporizhia and Kryvy Rih thermal power plants, and Dnipropetrovsk-based Prydniprovska thermal power plant with a combined installed capacity of almost 8.2 GW. DTEK owns 72.9% shares of Dniproenergo.