This article deals with new approximate #time schedule for #privatization of ‘#Centrenergo’ company, which is one of the most #attractive #lots of the privatization scheme in #Ukraine for #foreign #investors, as well as with #financial #performance of ‘Centrenergo’ company in the first half of 2016.
Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities
The State Property Fund of Ukraine announced that privatization of 78.289% of shares of ‘Centrenergo’ company, which was previously scheduled in November 2016 and then postponed to the first quarter of 2017, will be held in May-June 2017. Prior to the auction the Cabinet of Ministers of Ukraine shall determine conditions of sale and initial bid price.
However, as was reported previously, 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.
Recently ‘Centrenergo’ company announced that in the second quarter of 2016 it managed to generate net income in the amount of UAH 416.5 million (approximately USD 16.6 million). In the same period in 2015 the company had losses in the amount of UAH 38.4 million (approximately USD 1.5 million). Overall, in the first half of 2016 the net income of ‘Centrenergo’ company reached UAH 686.4 million (approximately USD 27.5 million).
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. There are currently 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.