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Wednesday, March 30, 2016

SPF schedules Odesa Port-Side Plant privatization for June

Ukraine's State Property Fund (SPF) intends to announce an auction on the privatization of public joint-stock company Odesa Port-Side Plant in the second half of May and hold it in June, Fund Head Ihor Bilous has said.
"I think that we will announce the deal in the second half of May. We jointly with the investment bank conducted a pre-sounding for investors and identified near 10 buyers that are international companies with a desire to participate in the auction that might take place in June," he said, speaking at the Business Forum Netherlands-Ukraine held in the Hague (the Netherlands) on Wednesday.

Bilous said that the sale and purchase agreement to be signed with a buyer is to include a proviso about international arbitration.
"International investors will be able to resolve some corner issues in the international arbitration court. This has never been done in Ukraine before," he said.
The fund also plans to hold auctions in Q3 and Q4 2016 and privatize six power supply companies. These companies will be interesting for investors in the light of the coming liberalization of energy legislation. The fund seeks to privatize Centrenergo at the end of the year.
"The preparations for the Centrenergo's privatization have only started. We're negotiating with sponsors and financial consultants," Bilous said.
He said that this year the fund hopes to privatize 45 companies and enterprises, including 20 large and 15 medium-sized.
He gave a hotel in Kyiv with 374 rooms as an example of a medium-sized asset.
"We plan to put it up for auction in spring. I think that next month we will announce the auction. The starting price is set up at around $13 million," he said.

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