State Property Fund of Ukraine determined initial bidding price for Odesa Port Plant

This article discusses the terms and #initial bidding price for #Odesa Port Plant, which is scheduled to be #privatized at the end of July. Odesa Port Plant is the second largest #producer of #ammonia and #urea and the third largest manufacturer of #nitrogen fertilizers in Ukraine. It is one of the most attractive objects undergoing privatization in Ukraine.

Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities.

According to the State Property Fund of Ukraine, the initial bidding price for 99.6% of shares of Odesa Port Plant is determined at UAH 13.175 billion (approximately USD 521 million). The head of the State Property Fund of Ukraine expects that at least five large companies will take part in the privatization auction which is scheduled at the end of July 2016. However, no Russian companies are allowed to take part in the auction.

We note that the European Bank for Reconstruction and Development (EBRD) announced that it is ready to purchase shares of Odesa Port Plant. However, such transaction will only take place if a privatization tender winning company satisfies requirements of the EBRD and would be willing to cooperate with the bank. At the moment, the EBRD is closely monitoring the privatization tender of Odesa Port Plant and is going to make its final decision (including in relation to the amount of shares to be purchased) by the end of this year.

In addition, the head of the State Property Fund of Ukraine announced that privatization of 78.9% of shares of ‘Centerenergy’ company (which was previously scheduled in November 2016), as well as most of agricultural enterprises, will be postponed until 2017.

We note that in accordance with the state budget of Ukraine it is expected to attract over USD 17 billion through privatization process in 2016. At the moment, there are around 450 entities to be privatized, including 30 large and 50 middle sized state owned companies. The State Property Fund of Ukraine aims to conclude privatization within three to five years.

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