PrykarpattiaOblenergo

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In Ukraine, starting in 1998 as an effort to improve payment discipline and the financial solvency of the sector, the first round of privatization of regional electricity distribution companies (oblenergos) took place. A weak legal framework along with the huge debts accumulated by oblenergos provided an opportunity for Ukrainian investors to acquire substantial shareholdings in some of them at low prices and thus deprived the State of revenues from transparent privatization. In all, seven oblenergos were privatized, which was generally considered sub-optimal as the oblenergos came to be controlled by offshore companies that initially refused to share their cash collections with the bulk power suppliers under a market algorithm in force. In addition, Government was concerned that investment in these companies had not been forthcoming. PrykarpattiaOblenergo was one of the companies privatised by local investors in 1998. As of March 15 2002, the company share allocation plan was the next: the State retained 25% ownership in the utility, 75% of the shares were sold to various Ukrainian investors (15.63%-under preferential subscription, 5.12 bought at auctions, 19.25% bought at stock exchange, and 35.00% bought via tenders). In September 2010, through the auction held in August 2010 by the State Property Fund of Ukraine (SPF), the Cyprus-based Zokatitni Enterprises Ltd.(12.5104%) and Miosaria Commercial Ltd (12.5105%) became the owners of the government's stake(25.021%) in the PrykarpattiaOblenergo power company stock, purchasing the Kyive-based Magnum Capital Lts, or a 25.021% in OJSC PrykarpattiaOblenergo for US$10.92 million. http://www.oe.if.ua/(utility website) 2011 capacity http://www.dragon-capital.com/en/institutional_investors/research/companies_issuers/pren.html