This article deals with delay in #privatization of #‘Centerenergy’ company, which is one of the most attractive lots of the privatization scheme in #Ukraine for #foreign investors.
Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities.
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, will be postponed until first quarter of 2017. Prior to the auction the Cabinet of Ministers of Ukraine shall determine conditions of sale and initial bid price.
In addition, the Head of the State Property Fund of Ukraine announced that it has not yet been decided whether the company will be sold as a whole or in part. This is due to the fact that some of the production facilities are located in Donetsk region and therefore might not be attractive to potential purchasers.
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. As of January 2016, there are over 4000 enterprises in which the state has its share. Such enterprises are active in construction, energy, agriculture, chemistry and transport industries. 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.
We also note that the State Property Fund of Ukraine specified the initial bidding price for 99.6% of shares of Odesa Port Plant 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.