Bloomberg News

Ukraine to Complete Zakhidenergo Sale Next Year, Fund Says

November 25, 2011

(Updates with DTEK’s offer in third paragraph.)

Nov. 25 (Bloomberg) -- Ukraine’s state property fund will complete the sale of a 45 percent stake in PAT Zakhidenergo at the start of next year after attracting only one bidder.

The fund, based in the capital Kiev, will hire an independent adviser in the next few weeks to value the holding, the fund’s spokeswoman Nina Yavorska said today. The government plans to keep a 25 percent stake plus one share in the energy producer.

Ukraine set a minimum asking price of 1.932 billion hryvnia ($241 million) for the stake. DTEK, Ukraine’s largest private power producer, offered 100,000 hryvnia more than the asking price. If DTEK, owned by Ukraine’s richest man Rinat Akhmetov, agrees to a new price, the fund will complete the sale, Yavorska said in a telephone interview.

Zakhidenergo, based in the western city of Lviv, is Ukraine’s fifth largest energy generating company, according to its website. It controls 9 percent of all Ukrainian energy production capacity. Ukraine’s government is seeking to raise 10 billion hryvnia through state asset sales next year, according to a draft budget.

--Editors: Tim Farrand, Peter Woodifield

To contact the reporters on this story: Daryna Krasnolutska in Kiev at dkrasnolutsk@bloomberg.net; Kateryna Choursina in Kiev at kchoursina@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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