OREANDA-NEWS. February 18, 2011. The National Energy Company of Ukraine (NC ECU), the state-owned company that manages stakes in electricity generation and distribution assets, moved a 25% stake in Odesaoblenergo (UX: ODEN UK), to the State Property Fund, according to media reports yesterday. The move was prescribed in a spring 2009 decree issued by the Cabinet of Ministers. In 2010, three other 25% stakes in electricity distribution companies were privatized, one as a 25% block, and another two in smaller 1-3% blocks. Odesaoblenergo sold 1,448 mln kWh electricity in 2010, earning UAH 2,628 mln in revenue, UAH 215 mln in EBITDA and close to zero in net income.

Concorde Capital: most likely the state will sell the Odesaoblenergo stake as one 25% block, due to lobbying by majority shareholder VS Energy. We do not expect the news to affect illiquid ODEN stock.