Page 10 - bne magazine November 2021_20211104 uzbekistan risding

10 I Companies & Markets bne November 2021
Additionally the government energy strategy to 2030 calls for a significant increase in renewable energy which is currently making up 12% of the energy mix, that will be increased to 25% and so spin out the gas resources even longer.
“Coming back to the bigger picture, in order to be self-sufficient, in addition to increasing natural gas production, we need to substantially increase production of biogas,” Vitrenko said. “It is sustainable and environmentally friendly. Ukraine has huge potential for biogas production as the largest country in Europe by land area. Land here is much cheaper than in Western Europe. We have huge potential for solar farms or wind farms and for biomass production. We have a very developed agricultural sector, which is also important for biogas production,” he noted.
Czech financial group PPF to sell 30% stake in CETIN to investment fund GIC
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Czech investment group PPF Group is selling a 30% stake in telecom network operator CETIN Group to Singapore-based investment fund GIC. PPF will retain a 70% majority stake in CETIN Group, the company announced in its press release from October 18.
No financial details were released, but this spring Bloomberg reported that PPF valued CETIN at $8bn.
“As a long-term investor, we are confident that the digital infrastructure sector will continue to grow robustly and CETIN, as the leading telecom platform in Central Eastern Europe, is well positioned to capitalize on that growth,” said GIC’s Chief Investment Officer of Infrastructure
Ang Eng Seng.
“Our partnership with GIC opens new possibilities for CETIN Group to draw upon the expertise of a leading global infrastructure fund and new prospects in our pursuit of business and growth opportunities in the telecommunications infrastructure market,” commented CETIN Group CEO Juraj Sedivy.
According to an analyst at J&T Bank Milan Vanicek, the
new strategic partner in the CETIN Group means that the chances of the company doing an IPO in the near future have significantly decreased or almost disappeared.
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The Naftogaz CEO also highlighted that improvements in energy efficiency would help Ukraine achieve energy independence. Ukraine used to be the most wasteful user of energy in Europe but has made enormous progress in improving energy efficiency in the last decade, but still has a long way to go.
“Ukraine is two times less energy efficient that the average Eastern European country. Maybe some would say this is good for the energy industry because Ukrainians consume
a lot of natural gas. However, in order to achieve energy independence, Ukraine must reduce inefficient energy costs. The cheapest and the most reliable energy is the energy that you don't waste,” commented Vitrenko.
PPF is rethinking its investment portfolio following the death of Petr Kellner.
Earlier in September, daily Hospodarske Noviny speculated that PPF Group was considering either selling part of its telecommunications infrastructure company CETIN to an investor or listing it on the Amsterdam stock exchange.
Radim Dohnal, founder of Capitalinked.com, said that the transaction is proof that PPF Group sees this sector as close to its top or fears regulatory or tax intervention.
"For such cases, it's good to have a government fund from
a prominent country by your side, such as one of the 11 countries rated AAA by S&P. Whether the motive for PPF is the need to bring additional resources to Home Credit, I don't know, but it is possible," he told the Czech News Agency.
After buying telecommunications companies in the Czech Republic in 2014 and in Hungary, Bulgaria, Montenegro and Serbia in 2018, PPF spun off their fixed and mobile networks, combining them into Cetin Group last year.
According to Bloomberg, PPF Group is also reportedly considering changes for its consumer lending company Home Credit and is now in discussion with advisers about options on partnerships and selling stakes, particularly focused on Southeast Asia and India. Home Credit activity in Indonesia, Vietnam, the Philippines, and India could be valued at between $2 billion and $2.5 billion, Bloomberg said.