OREANDA-NEWS. June 17, 2010. The competitive bids tender for a 76% stake of Luhanskteplovoz <LTPL UK STRONG BUY> held yesterday was won by Bryanskiy Machinebuilding Plant, which is part of the Russian Transmashholding. As result of the tender, the 76% stake was sold for UAH 410mn, which is half the Company’s market capitalization as of the tender date.

Despite such a low bid, Millennium Capital is certain that the news is POSITIVE for the Company because Millennium Capital thought previously and still thinks that Transmashholding is the best buyer for LTPL. It is on this buyer that we pin our expectations for the Company order book to grow and for continued successful development of the Company. But the process is far from being completed because a representative of Privat Group who was not permitted to bid has challenged the results of the tender. Millennium Capital expects a temporary correction of the stock price in the direction of the auction price, with its further growth after the launch of operations of the new owner of the Company.