Business news from Ukraine

GOLDMAN SACHS AND DRAGON CAPITAL BUYING KYIV’S MALL

Dragon Capital Investments Limited (Nicosia, Cyprus) and the Goldman Sachs Group (New York, the United States) are buying the Alladin shopping and entertainment center and the Platinum class B six-story business center adjacent to the shopping center located at 3A, Hryshka Street in Darnytsky district in Kyiv. According to the agenda of a meeting of the Antimonopoly Committee of Ukraine scheduled for October 18, the regulator is to permit Dragon Capital Investments Limited and the Goldman Sachs Group to acquire an indirect joint control over Royalty-Rent LLC (Kyiv).
Retail & Development Advisor, acting as a broker in the deal, on Wednesday wrote on its Facebook page that the deal to acquire the Platinum business center with an area of 4,100 square meters by Dragon Capital was finalized.
Britain’s Meyer Bergman acquired the Alladin shopping center in 2008 for $60 million. The area of the facility is 10,500 square meters.
According to the unified public register, as of October 18, 2018, participants in Royalty-Rent LLC were Leadnra Holdings Limited (99.98%), Fortbridge Limited (1.01%) and Royalty-Rent-Co-Invest LLC (0.01%).

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UKRAINE IS STRONG PLAYER IN INNOVATION – UKRAINIAN PRIME MINISTER GROYSMAN

Ukrainian Prime Minister Volodymyr Groysman has said that today Ukraine is a very strong player in the field of innovation, and the Ukrainian IT sector shows an increase of about 20% annually. “We need to increase dynamic growth, and we need new investments for this goal. Of course, we need new technologies and not only technologies that we can borrow, but I think that many people will agree that today Ukraine is a very strong player in the field of innovation,” he said at the Kyiv International Economic Forum on Thursday. The premier added that in the innovation sector, the country is showing dynamic growth, in particular, a significant increase is shown by the IT sector – about 20% annually.
“We understand that new technologies are in conflict with the number of jobs,” Groysman added.
At the same time, he stressed that in Ukraine there are sectors where new jobs are created, and official unemployment in the country is falling.
The premier also predicted a shortage of labor in the future.
Groysman noted that there are areas in Ukraine that have the 10-12-fold potential for growth, which allows it to be quite competitive in investment.

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KYIVKHLIB INCREASES CHARTER CAPITAL BY 10%

PrJSC Kyivkhlib, the largest bread producer in Kyiv, is increasing its charter capital by UAH 3.9 million or 9.8%, to UAH 43.5 million via an additional issue of shares.
According to a company report in the information disclosure system of the National Commission for Securities and the Stock Market, the decision to increase the charter capital was made by the company’s shareholders at a general meeting on October 5.
The company said that the shares will be placed privately. The holders of ordinary nominal shares have priority in buying the shares being placed proportionally to their stakes in the company. The shares will be placed at UAH 0.05 per share, which equals to its face value.
The company in 2017 saw UAH 15.27 million of net profit, which is 21.6% less than a year ago.
PJSC Kyivkhlib was established in 1996 through the reorganization of state enterprise Kyivkhlibprom. It is the largest producer of bread and bakery goods in Kyiv. The company includes nine production sites in the capital and Kyiv region.

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UKRAINIAN PRODUCER OF FOOD FOR PETS TO BOOST SALES BY 21%

The Ukrainian producer of food for pets, Kormotech LLC (Lviv region) plans to boost pet food sales by 21.8% at the end of 2018 from a year ago, to 38.4 tonnes.
“Sales for the first half of the year increased 31.1% compared to the same period of 2017. We intend to increase sales of pet food in 2018 by 21.8% compared with last year. We sold 31.5 tonnes of products in 2017, revenues amounted to UAH 1 billion,” CEO and co-founder of Kormotech Rostyslav Vovk said in an interview with Interfax-Ukraine.
According to him, at the end of 2017, the share of Kormotech in terms of sales of the Ukrainian market was 36.2%.
“Of these, our brands had 31.5%, and another 4.7% – products that we produce under a private label,” Vovk said.
He said that in the third quarter of this year, the company was forced to completely suspend the plant for one week to install new equipment and two more – to work in test mode to fully configure and launch the updated production line.
“This modernization allows us to increase our capacity next year, but it has somewhat reduced our production capacity now. Therefore, by the end of 2018, we expect to keep the same position as last year, or slightly concede (no more than 1% of the market share). Next year we plan to regain the market share we had at the beginning of 2018 and keep it until the end of 2019. And in the next three years we are trying to increase it by 2-3%,” the Kormotech CEO said.
Vovk said that now the production facilities are loaded in full and the company plans to increase the annual capacity to 30,000 tonnes of dry feed and 16,000 tonnes of wet feed by the end of this year.
“Now it is 28,000 tonnes of dry and 11,000 tonnes of wet feed. To better present the quantity, it is 70 million 400-gram packages of dry and 110 million 100-gram packages of wet feed,” he said, adding that about 30% of imported raw materials are used to make the feed.
Kormotech exports its products to 17 countries, including France, Estonia, the Netherlands, Slovenia and Poland. The company has two plants that produce dry and wet pet feed.

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