Ukraine's biggest energy holding, DTEK, has won a privatization tender for 45% of the stock in Simferopol-based power-supply company Krymenergo with an offer of UAH 256.1 million ($32 million) against a starting price of UAH 246 million, according to the Ukrainian State Property Fund's website.
The other bidder, LLC Luhansk Energy Association, which is controlled by businessman Konstantin Grigorishin, was prepared to pay UAH 253.6 million for the stake.
DTEK Holdings Ltd of Cyprus, the DTEK holding company, offered UAH 246.1 million in the first auction round – Luhansk Energy Association UAH 246.05 million. There were four rounds in all.
DTEK already owns 12.49% of Krymenergo and Garensia Enterprises Limited (also of Cyprus) 10.77%. Another 25% of shares is owned by national stock company Energy Company of Ukraine.
Krymenergo operates the electrical power distribution grid on the Crimean Peninsula, and offers regional consumers services in the transport and supply of electricity.
DTEK and Luhansk Energy Association had previously contended for 50% of the stock in one of Ukraine’s biggest power-supply companies, Dniprooblenergo (Dnipropetrovsk) and 25% of the stock in Donetskoblenergo (Donetsk). DTEK was the winner in both instances.
DTEK, formed in 2005 to manage the energy assets of businessman Rinat Akhmetov’s System Capital Management group, includes a vertically integrated group of companies, from the mining and enrichment of coal to the generation and sale of electricity.
