OREANDA-NEWS. December 9, 2011. DTEK has become the winner of an open auction held by the State Property Fund of Ukraine to sell a 25% stake in Kievenergo. The Company will buy the shares for UAH 450.5 mln. The payment will be made on December 12, 2011.

Finally, the privatization tender for a 25% stake in Kievenergo has taken place. We have become the winner in fair competition, which is very important not only for us, but also for our investors and shareholders. DTEK is fully aware of the responsibility it is taking on with the consolidation of the controlling stake in Kievenergo. Due to continuous underfinancing of Kievenergo during the last decade, Kiev is far behind its European peers in terms of the quality of electricity and heat supply services, level of technologies applied and condition of cable and heat networks. We commit ourselves to closing the gap. The residents of Kiev would forget about ruptures of heating lines and power cuts. By our estimates, the required investments are 12-15 billion Ukrainian hryvnias. Starting from 2012, DTEK intends to invest up to UAH 1 bn into the upgrading of Kiev’s power infrastructure each year. To meet these ambitious targets, we will need the support of the city residents and authorities, and we will try to promptly present our program on development of the capital’s energy company for public discussion’, says Maxim Timchenko, CEO of DTEK.

The tender on sale of 25% of shares in Kievenergo held by the government was announced on October 5 and scheduled for November 25. To provide equal opportunities for the bidders, the State Property Fund postponed the tender until December 9.