KhersonOblenergo

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The Ukrainian government, through the State Property Fund, sold a 65% stake in Khersonoblenergo Distribution Company to Slovakia’s Vykhodoslovenske Energeticke (VSE). At the time of the partial divestiture Khersonoblenergo was an energy supplier for part of western Ukraine, with total generating capacity of 81.3 MW. Khersonoblenergo supplied electricity to the Kherson Oblast region, an area of some 28,500 square kilometers with population of over 1.2 million. The industrial sector consumed some 30% of Khersonoblenergo’s output, with Kherson Oil Refinery and Pivdenny Machine Building Plant as the largest demanders. Khersonoblenergo was one of six regional distribution companies that were privatized by the government of Ukraine in 2001. The divestiture was finalized in April 2001. The winning bid was $20.7 million for the 65% stake. VSE is an electricity distributor based in Kosice and operating in Eastern Slovakia. Before this transaction 25% of Khersonoblenergo had already been privatized, with the company’s managers and employees holding some 16.54%. In March of 2002 VSE sold its stake in Khersonoblenergo and four other Ukrainian power companies to Dutch company VS Energy International N.V. VS Energy Intl was 99% owned by VSE. The transfer was an attempt to restructure VSE’s assets before its own privatization. In January of 2003 the Slovak government sold 49% of VSE to German company RWE. At the end of 2004 VS Energy International NV owned a 94.5% stake in KhersonOblenergo. In Septemeber, 2006, there was an additional stock issue worth US$ 4.15 million of which VS Energy bought 94.51%. As such, VS Energy managed to maintain its 94.5% stake in the company after the additional issue. http://www.smida.gov.ua/reestr/?kod=05396638 (annual reports) http://ksoe.com.ua/ (utility website)