OREANDA-NEWS. January 11, 2012. DTEK has signed an agreement on the purchase of 45.103 % in Zapadenergo with the State Property Fund of Ukraine (SPFU).  The stake’s price amounted to UAH 1.932 bn, which is by UAH 34.5 m above the value determined by an independent appraiser. As a result, DTEK has concentrated 70.91% in the generating company.

 On January 10, 2012 the SPFU’s tender commission unanimously announced DTEK Holdings Ltd. the winner of the tender on the sale of the stake in Zapadenergo. DTEK was the only bidder, so, following the procedure established, the SPFU invited an independent appraiser to determine the market value of the company. According to the appraiser, the value of the block of shares in Zapadenergo as of November 30, 2011 was UAH 1.897 bn, which is lower than the price offered by DTEK – UAH 1.932 bn. Thus, the SPFU asked DTEK to buy the stake at the price previously offered by the company.

 Zapadenergo is a Ukrainian thermal power generating company. It includes Burshtynskaya TPP (2,300 MW), Ladyzhinskaya TPP (1,807.5 MW) and Dobrotvorskaya TPP (500 MW). Electricity produced by the company is supplied to Ukrainian consumers and exported to European countries.

 Maxim Timchenko, DTEK’s CEO says: ‘DTEK has always considered Zapadenergo a strategic target as the key consumer of coal and a company with a great production potential. Since 2007 we had been an active buyer of the company’s shares in the open market, and by the time of privatization we became the largest private shareholder of Zapadenergo. By joining DTEK, Zapadenergo will obtain significant investments, high quality fuel resources and good management practices we have implemented. DTEK plans to invest over UAH 10 bn into the modernization of Zapadenergo’s generating capacities, enhancement of its production efficiency and development of its export potential by 2020. We are only at the start of a long journey, but I am confident that the team of professions from DTEK and Zapadenergo will be able to achieve the most ambitious goals.’