EAVEX Weekly

September 04, 2017

Ukrainian equities finished mixed in the final trading week of the slow summer period ahead of an expected pick-up in activity that traditionally occurs in the first full week of September. In the stock market related news, the State Property Fund (SPF) continued to sell off the state’s 25% blocking stakes in electricity companies to Ukraine’s richest industrialist, Rinat Akmetov. Last week the SPF sold 25% of generator DniproEnergo (DNEN) and distributor DniproOblEnergo (DNON) to Akmetov’s SCM group via auctions. SCM was the only bidder for DniproEnergo, and thus bought the stake at the auction starting price of UAH 728mn, or UAH 488 per share, a price that was 43% lower than the listed quotes for DNEN on the Ukrainian Exchange on the day before the auction. The privatization of DniproOblEnergo attracted two bidders, which doubled the starting price to UAH 1.01bn for the stake, or UAH 670 per share. This price was 2.8x higher than quotes for DNON on the UX. SCM had already owned 52% o