Kyivenergo splits into a network operator and an electricity seller

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Kyivenergo Press Service has announced that on 22 December, Kyivenergo shareholders resolved on separating from the company a distribution system operator, Kyiv Electrical Networks DTEK, Economichna Pravda reports.

As of the shareholder meeting’s date, the largest holders of voting stock in Kyivenergo were companies controlled by Rinat Akhmetov’s SCM: DTEK Holdings Limited (25%), DTEK Energy B.V. (29%), Ornex Limited (21%) and DTEK Energo (18%).

“The newly-established company will operate as an electricity distributor and electricity network operator. Therefore, Kyivenergo is going to transfer the rights, obligations and property required for a distribution business to Kyiv Electrical Networks DTEK. It is expected that the state registration of the new company will be completed in February 2018,” the press release says.

At the same time, Kyivenergo will continue to operate as an electricity supplier.

Due to reorganization, the shareholders decided to convert 108.4 million Kyivenergo shares with the par value of 0.25 UAH each into the same number of Kyivenergo shares with the par value of 0.05 UAH each and Kyiv Electrical Networks DTEK shares with the par value of 0.2 UAH each.

“Therefore, all current shareholders will become holders of Kyivenergo and Kyiv Electrical Networks DTEK stocks,” the press service clarified.

According to Kyivenergo press service, the creation of new companies will not affect in any way the scope of rights and obligations under municipal assets management agreements between Kyiv City Council and Kyivenergo. The ownership by Kyiv community of Cogeneration Plant 5, Cogeneration Plant 6, Energy Factory, heat distribution networks and other properties remains inviolable.