Energy companies up for grabs
largest energy generating companies...
The largest energy generating companies in Ukraine will be for sale for sale in late summer – early fall, according to KyivWeekly. Chair of the State Property Fund of Ukraine Oleksandr Ryabchenko announced late June that the first lots will be put up for sale on tender in August.
Industry analysts already know which assets entrepreneurs are keeping their eyes on. Among the most attractive assets are 25% stake in KyivEnergo, 45.1% stake in Zakhidenergo and 50% stake in Zakarpattya Oblenergo.
The SPF officially announced on July 6 the pre-sale preparations and invited potential buyers to submit their bids and requests as to the terms and conditions of the tender procedure.
The packages that the state retains will hardly allow government to block any decision and will not pay any real dividends either in administrative or industrial aspect. “In practice the government rids of real levers of influence on companies with such shares as was proven in the cases with PrykarpattiaOblEnergo, SumyOblEnergo, PoltavaOblEnergo, ChernihivOblEnergo and LvivOblEnego, where the government was left with only 25% stakes after their sale in 1998-1999.
The government was held hostage in conflicts between other minority shareholders and for years could not receive the full dividends it was owed by those companies. However, “the Cabinet has lost the moment in 2006 – 2008 when it could sell its packages to one of the conflicting sides and get a good price due to tough competition among potential buyers,” a senior analyst at BG Capital Oleksandr Parashchiy told KW.