OREANDA-NEWS. March 25, 2010. According to a recent release of the acting CEO of the State Property Fund of Ukraine (SPF) Mr. Ryabchenko, SPF is to announce a privatization tender to sell a 76% stake in Luhanskteplovoz <LTPL UK BUY> share capital in April 2010. Tentatively, the starting price will be set at a level that is slightly higher than USD 50mn.

This news is rater neutral and has information character. Millennium Capital has already admitted positive expectations of privatization in our forecast about LTPL stocks. It is important to point out that the 76% stake of the Company will be sold for an amount that is no less than at the previous privatization tender in March 2007 (USD 57.92mn). According to the current price (USD 0.63 per share), ultimately the privatization sale cost of the Company may rise more than twofold and reach USD 104.3mn.