Ukraine DTEK Buys 25% Stake in Electricity Producer Dniproenergo

DTEK, Ukraine’s largest private coal and power producer, won a bid to buy a 25 percent stake in electricity producer PAT Dniproenergo (DNEN), its fourth purchase of a power company since December.

Ukraine’s state property fund sold the stake in Donetskoblenergo to DTEK for 1.180 billion hryvnia ($147 million), according to a statement on the fund’s website today. DTEK, owned by the country’s richest man, Rinat Akhmetov, was the only bidder, the property fund said. The minimum price was 1.174 billion hryvnia, according to the fund.

DTEK bought 40 percent of power distributor PAT Donetskoblenergo (DOON) and 45 percent of electricity producer PAT Zakhidenergo (ZAEN) in January, and 25 percent of PAT Kyivenergo (KIEN), a state-owned energy generating and distribution company, in December. Its most recent acquisition was a coal mine in the east of Ukraine this month.

Ukraine raised 2.7 billion hryvnia, 27 percent of the government’s 2012 target for the sale of state assets, in the first two months of the year, the state property fund said on March 6.

DTEK said last April net income jumped to $359 million in 2010 from $108 million the previous year.

-- Editors: Chris Peterson, Alan Purkiss

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

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