OREANDA-NEWS. September 30, 2010. DTEK, Ukraine’s leading private sector fuel and energy company has, together with affiliate companies, increased its stake in the total share capital of Zakhidenergo, to 24.9%. DTEK is committed to following best practice in transparency and corporate governance with regard to its stake in Zakhidenergo. In keeping with this policy, DTEK has officially informed Zakhidenergo of its increased shareholding. Terms of the transaction are undisclosed.
 
Commenting on the deal, Maxim Timchenko, CEO of DTEK, said:
 
 “DTEK has had business connections with Zakhidenergo for a long time. The increase of our stake in this power generating company is in line with our strategy to build a vertically integrated value chain, connecting coal mining and thermal power generation. DTEK continues to be interested in increasing its stake in Zakhidenergo further through the purchasing of additional shares on the open market as well as through privatisation.”
 
Reference
 
Zakhidenergo is one of the leading thermal power generation companies in Ukraine. Electricity produced by the Company is supplied within the country and for export to Europe.
 
Zakhidenergo consists of Byrshtynskaya TPP, Ladyzhinskaya TPP and Dobrotvorskaya TPP.
 
From 01.07.2002 Byrshtynskaya TPP is working as “energy island” in European energy system UCTE\CENTREL servicing its own electricity needs and exporting 500 MW of electricity.

Zakhidenergo’s installed capacity is 4707,5 MW.

Government controls 70,1% share in Zakhidenergo through Energy Company of Ukraine.

For further information, please visit http://www.zakhidenergo.ua .  
 
DTEK is the first private vertically-integrated power company in Ukraine. It is part of the financial and industrial group System Capital Management (SCM). The enterprises of DTEK build up an efficient operational chain of coal production and enrichment, electricity generation and distribution.
 
The coal business of DTEK includes Pavlogradugol (consisting of ten coal mines), Komsomolets Donbassa Mine and five enrichment plants. According to 1H 2010 operational results, the Company’s share in the Ukrainian coal mining industry was 26.3%.
 
The generation business of DTEK is represented by Vostokenergo and the associated Dneproenergo Company, in which DTEK owns 47.55%. According to 1H 2010 operational results, the share of Vostokenergo and Dneproenergo in thermal generation of Ukraine was 26.9% and 21.9% respectively.
 
Service-Invest and Energougol ENE represent the electricity distribution business of DTEK. Their share of electricity purchase in SE Energorynok in 1H 2010   made 8.0%.