Ukrainian to privatize nine power utilities, two gencos in 2011
KYIV. April 13 (Interfax) - The Ukrainian government has approved a list of nine regional power utilities and two generating companies for privatization in 2011.
The government said in an instruction dated April 11 but made public on April 12 that it would sell 25% of the Dniproenergo genco and 45.1% of Zakhidenergo.
It will also put 25% of Kyivenergo, 45% of Krymenergo and stakes in seven other regional utilities up for sale in 2011, including 50% of Vinnitsaoblenergo, Dniproenergo and Zakaroattyaoblenergo, 0.06% of Donetskoblenergo, 25.99% of Ternopoloblenergo and 45% of Chernovtsyoblenergo.
The government intends to sell 21% of Cherkassyoblenergo together with a 25% stake that is owned by the state-controlled CJSC UkrESCO.
The government had thought of selling all of its stakes in the electricity companies, without retaining blocking stakes, which the market thought would have given it a better chance of attracting strategic investors and getting a better sale price.
Significant stakes in five of the 11 companies are currently owned by DTEK, Ukraine's biggest privately owned energy holding. It owns 24.9% of Zakhidenergo, 47.55% of Dniproenergo, 39.98% of Kyivenergo, 30.59% of Donetskoblenergo and 12.49% of Krymenergo.
Ihor Kolomoisky and Konstantyn Hryhoryshin own 20.3% of Vinnitsaoblenergo, 15.89% of Dniprooblenergo and 40% of Ternopolenergo via the offshore firms Garensia Enterprises Limited, Bikontia Enterprises Limited and Larva Investments Limited.
VS Energy International N.V. controls 10.53% of Zakarpattyaoblenergo and 21.98% of Chernovstyoblenergo.
The national Ukrainian Energy Company owns 70.1034% of Zakhidenergo, 50% plus one share in Dniporenergo and Kyivenergo, 75% of Vinnitsaoblenergo, Dniprooblenergo and Zakarpattyaoblenergo, 70% of Krymenergo and Chernovstyoblenergo, 65.06% of Donetskoblenergo and 50.99% of Ternopolenergo.
The government on February 23 struck the Dniproenergo, Zakhidenergo, CenterEnergo and Donbassenergo heat and power generating companies and 19 regional power utilities plus Kyivenergo off the list of strategic enterprises, enabling them to be privatized.
First Deputy Prime Minister Andrei Klyuev has said the gencos could start to be privatized in Q2 2011.
Italy's Enel is keen to buy into Ukrainian electricity sector companies slated for privatization, the Ukrainian State Property Fund said on March 30.
The Fund said interest was expressed at a meeting between its senior officials and representatives of Enel and the Italian embassy in Ukraine at the beginning of March.
