European and Latin American companies are interested in Odesa Port Plant privatization

This article discusses the terms for #privatization auction and interest in #privatization of #Odesa Port Plant by European and #Latin American companies. Odesa Port Plant is the second largest #producer of #ammonia and #urea and the third largest manufacturer of #nitrogen fertilizers in Ukraine. In 2015 Odesa Port Plant received UAH 218.514 million of #net profit in accordance with international financial reporting standards.

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

The Deputy Head of the State Property Fund of Ukraine announced that two companies, one from Europe and one from Latin America, expressed their interest in participation in the auction regarding privatization of 99.6% of shares of Odesa Port Plant.

We note that earlier the State Property Fund of Ukraine officially approved terms and conditions for privatization auction of Odesa Port Plant. The auction will take place on 26 July 2016 at the premises of the State Property Fund of Ukraine at 11 am. The bidding proposals should be submitted no later than on 18 July at 18 pm. The initial bidding price is determined at UAH 13.175 billion (approximately USD 527 million). The head of the State Property Fund of Ukraine expects that at least five large companies will take part in the privatization auction. However, no Russian companies are allowed to take part in the auction. In addition, the auction will be declared invalid if there are fewer than two participants with one of them not being a non-resident.

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.

Be the first to comment

Leave a Reply

Your email address will not be published.


*