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Business news from the Ukrainian League of Industrialists and Entrepreneurs

COMPETITION AGENCY PERMITS CHINA’S MANWAH FURNITURE GROUP TO BUY 50% OF HOME GROUP WITH ASSETS IN UKRAINE

KYIV. June 20 (Interfax-Ukraine) – Ukraine’s Antimonopoly Committee has permitted Man Wah Group Limited (British Virgin Islands) to buy shares in Home Group Ltd (Cayman Islands), the subsidiary of famous European homeware producer, which also includes Morgan Furniture LLC furniture factory (Rivne region).
The committee said that the acquisition of the shares will grant over 50% of the votes in the management body of Home Group to Man Wah Group.
According to Man Wah Group, in November 2016 the group signed a memorandum of understanding and later the shareholder agreement with HG International and Home Group.
Under the agreement, HG International is obliged to transfer 75% of shares in most companies in Poland, Baltic countries and Ukraine to the subsidiary of Home Group before December 31, 2016.
In turn, Man Wah Group obliges to buy 50% of Home Group.
The strategic alliance of the groups would allow ManWah to receive access to industrial assets and the sales chain of Home Group in Europe.

UKRAINE’S AN-132D BUILT FOR SAUDI ARABIA SUCCESSFULLY DEBUTS AT PARIS AIR SHOW

KYIV. June 20 (Interfax-Ukraine) – The brand new An-132D transport aircraft built by Kyiv-based Antonov enterprise for Saudi Arabia as part of large-scale international cooperation has successfully debuted in the demonstration flight program at the 52nd International Paris Air Show in Le Bourget, France, on June 19.
The An-132D took part in the demonstration flights on the opening day of the event, impressing visitors with its capabilities, Ukrainian state-run concern Ukroboronprom’s press service said on Monday.
The world premiere of the brand new An-132D at Le Bourget 2017 was successful, the press service said, adding: “Thousands of those interested in the aircraft come to see [it at] the display lot where it rests between flights.”
The new plane is expected to participate in other demonstration flights at the air show also on June 21, it said.
The air show kicked off on June 19, it will last until June 25.
The An-132D multi-purpose plane with a carrying capacity of 9.2 tonnes is modification of the An-32 light transport aimed to replace the An-32 and the An-26 on the market.
Antonov is implementing the program under a contract signed in April 2015 with Saudi Arabia’s King Abdulaziz City for Science and Technology (KACST) and Taqnia Aeronautics Co. The plane is being built with participation of leading western manufacturers: Pratt & Whitney Canada, CMC Electronics (Canada), U.S. Honeywell, France’s Liebherr and Britain’s Dowty Propellers.
The assembly of the prototype showcased at the air show was finished at Antonov’s facilities in December 2016. In March 2016, the plane successfully carried out its maiden flight.

IDEA BANK, UKRPOSHTA REALIZING PROJECT TO ISSUE CONSUMER CREDITS

KYIV. June 20 (Interfax-Ukraine) – Idea Bank (Lviv) starts issuing credits via departments of public joint-stock company Ukrposhta, the bank has said in a press release.
At the first stage Idea Bank will sell credit via 51 departments of Ukrposhta located in rural areas of Zhytomyr, Mykolaiv, Cherkasy, Chernihiv and Kherson regions. Eventually it is planned to expand cooperation via expanding the range of products and the number of regions.
“As part of cooperation with Ukrposhta, Idea Bank has designed a special credit program for individuals aged from 21 to 75 with the credit limit of UAH 50,000. The implementation of the joint project would help Idea Bank to expand geography of issuing the credits, boost its credit portfolio and the clients’ base. This year Idea Bank wants to expand the volume of cash credits to UAH 2 billion,” the press service of the bank reported, citing Board Chairman Mykhailo Vlasenko.
At present, partners of Idea Bank in issuing credits are 11 banks and two non-bank institutions.
Idea Bank was founded in 1989. The largest shareholder on January 1, 2017 was Getin Holding S.A. (99.5878%).
Idea Bank ranked 30th among 90 operating banks on April 1, 2017 in terms of assets (UAH 3.318 billion), according to the National Bank of Ukraine.

DCH OWNER YAROSLAVSKY ENTERTAINS PURCHASE OF ANOTHER UKRAINIAN BANK IF PIB BID FAILS

KYIV. June 20 (Interfax-Ukraine) – Ukrainian businessman, owner and president of DCH Group Oleksandr Yaroslavsky is ready to purchase another other Ukrainian bank if his bid to acquire Prominvestbank (PIB) fails.
“I will expand my presence in the financial segment. If I am unsuccessful with PIB, I’ll look at other banking institutions. I have acquired several large industrial assets, and now I need a bank to use as a financial instrument to control them,” Yaroslavsky said in an interview appearing in the Biznes (Business) magazine.
PIB was established in 1992. Russia’s VEB owns 99.7% of its shares.
According to Ukraine’s National Bank of Ukraine (NBU), over the first quarter of 2017 bank assets decreased by 22.9% to UAH 25.61 billion, with the bank falling from Ukraine 11th to 13th biggest bank among Ukraine’s largest 90 banks.
The NBU in April received documents from two citizens offering to take part in the purchase of PIB, according to the NBU regulator, who did not identify the citizens.
Media have reported that potential buyers are: founder of MosCityGroup Pavlo Fuks [Russia’s Otkritie Bank is preparing to file a bankruptcy case against him] and Verkhovna Rada of Ukraine member Maksym Mykytas.
Yaroslavsky in late May also announced his intention to purchase Prominvestbank.
“On May 12, 2017, DCH directed the offer of purchasing Prominvestbank (PIB), Ukrainian subsidiary of VEB, to Vnesheconombank (VEB, Russia),” DCH Group’s website said on May 19, 2017.
The Kyiv-based Interfax-Ukraine news agency learned from the NBU’s press service that, as of now, Yaroslavsky has not submitted paperwork to complete the deal.

PIVDENNODONBASKE 1 COALMINE LAUNCHES NEW LONGWALL FACE WITH COAL DEPOSITS OF 500,000 TONNES – OFFICIAL

KYIV. June 19 (Interfax-Ukraine) – A new longwall face with coal with coal deposits of around 500,000 tonnes has been launched at state-owned enterprise Pivdennodonbaske colliery group 1 (Vuhledar, Donetsk region). It would allow the coalmine to produce 800 tonnes of coal a day, Head of Donetsk Regional Military and Civilian Administration Pavlo Zhebrivsky has said.
He said on his Facebook page that the face is 250 meters long and 0.72 meters thick.
He said that mining operations at the coalmine were carried out in May 2017. The equipment was removed from the abandoned face. The cost of works was UAH 39.2 million, including a UAH 30 million loan provided by Ukraine’s Energy and Coal Industry Ministry.

UKRAINE, KAZAKHSTAN DRAWING UP INTERGOVERNMENTAL AGREEMENT ON COOPERATION IN AVIATION INDUSTRY

KYIV. June 19 (Interfax-Ukraine) – Ukraine and Kazakhstan plan to expand cooperation in the aircraft building area and drawing up an intergovernmental agreement on cooperation in aviation industry for signing.
Plans to develop cooperation in the aviation industry between the two countries were discussed at the 13th meeting of the joint interstate Ukrainian-Kazakh commission on economic cooperation in Astana with the participation of Deputy Prime Minister and Minister of Regional Development, Construction, Housing and Utilities Services Hennadiy Zubko, the press service of the deputy prime minister reported on Friday.
According to Zubko, following the meeting, the parties reached an agreement to finalize the draft agreement between the Cabinet of Ministers of Ukraine and the government of Kazakhstan on industrial cooperation in aircraft building and prepare it for signing.
The parties also decided to intensify the interaction between state-owned companies Ukrspecexport and Kazakhstan Aviation Industry LLC to create a service center for maintenance of Antonov aircraft on the basis of the aviation technical center in Astana, he said.
The deputy prime minister said that the cooperation plans also include preparation of an action plan to provide airlines and interested structures of Kazakhstan with regional jet passenger aircraft An-148 and An-158, as well as services for air transportation of super-heavy and bulky cargo.
At the meeting, the sides also discussed the possibilities of expanding cooperation in the field of aircraft engine building: Ukraine confirmed its readiness to supply new TV3-117VMA-SBM1V helicopter engine to Kazakhstan, as well as carrying out overhaul of TV3-117 engines of the D-36 engine family for Kazakh customers, Zubko said.
The meeting participants also considered the potential of the bilateral partnership in the field of exploration and use of outer space: “An agreement was reached to support cooperation within the framework of the Ukrainian-Kazakh working group on the creation of a space-based missile system using a light launch vehicle,” the official said.
According to Zubko, Ukraine also considers shipbuilding as one of the promising areas of cooperation between the two countries: this is designing, building and equipping Kazakhstan’s ships and boats. Ukraine is ready to offer a concept and supply equipment for the organization of protection of the sea line of Kazakhstan, he said.