Business news from Ukraine

AGROMINO COMPLETES DEAL TO ACQUIRE RESILIENT

Agromino has finalized a deal with the owner of Resilient and the key shareholder in Agromino – Mabon – on the acquisition of 100% of shares in Resilient for a consideration of 7.474 million newly issued shares in Agromino, equivalent to a value of EUR 12.935 million.
According to a posting on the website of Agromino, Mabon subscribed for the newly issued shares at a subscription price of SEK 18.6 per share and is now controlling approximately 74.3% of the outstanding shares and votes in Agromino.
The total number of Agromino’s shares after the deal grew from 17.421 million to 24.895 million.
The final valuation made by the company’s financial adviser, BDO, confirmed that the fair market value of Resilient corresponds to EUR 13.474 million.
Agromino said that Resilient will be consolidated as part of Agromino group from October 17, 2019.
Agromino (formerly Trigon Agri) was established in 2006. It specializes in grain and dairy production, agricultural trade.
In Ukraine, the company owns three silos with a capacity of 85,000 tonnes. Its land bank is about 47,000 hectares in Kharkiv, Mykolaiv, and Kirovohrad regions.

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STATE-RUN ENERGOATOM DECREASES POWER GENERATION BY 0.5%

Electricity generation by all power plants of state-owned enterprise Energoatom in January-August 2019 decreased by 0.5% (by 323.1 million kWh) compared to the same period last year, to 60.729 billion kWh.
According to the press service of the company, the plan for production of electricity for the specified period in 2019 was exceeded by 0.9%.
The power plants of the state enterprise supplied 57.02 billion kWh of electricity to the market compared with 57.376 billion kWh in January-September 2018.
The share of Energoatom in the overall structure of electricity production in the country amounted to 53.2%, which is 0.5 percentage points more than January-September 2018.
The volume of capital investments for the nine months amounted to UAH 8.172 billion compared with UAH 8.1 billion for the same period a year earlier. The financing of capital investments amounted to UAH 10.739 billion compared with UAH 8.599 billion respectively.
Energoatom transferred UAH 9.55 billion to the budgets of all levels, insurance payments amounted to UAH 1.928 billion.
The installed capacity utilization factor of the company’s nuclear power plants amounted to 66.8%, which is 0.4 p.p. more than in January-September 2018.
In January-August, 10 violations were recorded in the operation of Ukrainian nuclear power plants (16 in the first nine months of 2018).
Energoatom is the operator of all four operating nuclear power plants in Ukraine. It operates 15 power units equipped with water-cooled power reactors with a total installed electric capacity of 13.835 GW.

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KYIVSKY CARDBOARD MILL SEES SLIGHT RISE IN PRODUCTION

Kyivsky cardboard paper mill (Obukhiv, Kyiv region), a leader in Ukraine’s pulp and paper industry in terms of production and sales, saw a 1.8% rise in production of goods in money terms in January-September 2019 year-over-year, to UAH 4.139 billion, according to the Ukrpapir association.
Corrugated packaging output fell by 1.7%, to 172.64 million square meters, retaining the second highest result among producers of corrugated packaging in Ukraine after Rubizhne cardboard packaging mill in Luhansk region (with Trypilsky packaging plant).
Production of cardboard decreased 4%, to 149,170 tonnes. Production of package cardboard alone grew by 2.7%, to 108,590 tonnes, while box cardboard output fell by 18.5%, to 40,580 tonnes.
Production of base paper (for sanitary products) stood at 61,140 tonnes, which is 3.8% up year-over-year. Toilet paper output rose by 4.3%, to 330.4 million rolls.
Kyivsky cardboard paper mill is one of the largest cardboard and paper producers in Europe. It employs almost 2,200 people. It sells produce to almost 700 companies in Ukraine, some CIS member states and the rest of the world.

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STATE-RUN UKRZALIZNYTSIA WANTS TO BUY CHINESE LOCOMOTIVES

Ukrzaliznytsia has confirmed its interest in cooperation with China’s CRRC Corporation Limited, the rolling stock manufacturer, the Ukrainian company said on Friday.
According to Board Chairman of Ukrzaliznytsia Yevhen Kravtsov, who is quoted in the report, the company is interested in cooperation with the Chinese manufacturer and is ready to work together to develop mechanisms for such cooperation.
“We have a serious need to update the traction rolling stock, and the Chinese partners offer modern locomotives that can significantly improve the situation with the locomotive fleet and bring Ukrzaliznytsia to a higher level of competitiveness,” he said.
The head of Ukrzaliznytsia recalled: given the tendency to reduce the weight of freight trains, CRRC proposes to supply one-unit 6-axle locomotives, the maintenance of which is 33% cheaper, instead of the usual two-unit 8-axle locomotives.
“Once again I emphasize: the main point of our negotiations will be the purchase price, maintenance, the ability to localize the production of components and spare parts. I am sure that together we will come to a consensus and choose the most favorable conditions for cooperation,” Kravtsov said.
According to the report, Kravtsov took part in negotiations with representatives of CRRC, chaired by Minister of Infrastructure of Ukraine Vladyslav Krykliy.

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UKRAINIAN INSURANCE COMPANIES RAISE PREMIUM COLLECTION THROUGH RESIDENT INTERMEDIARIES BY 70%

Ukrainian insurance companies in January-June 2019 collected UAH 106.5 million of premiums under insurance contracts signed through resident intermediaries, which is 70.8% more compared to the same period a year earlier (UAH 62.322 million), according to the website of the National Commission for the State Regulation of the Financial Services Market. The number of contracts concluded through resident intermediaries for January-June grew by 7.3 times, to 18,937.
Remuneration for the provision of such intermediary services for the specified period grew almost 3.5-fold, to UAH 14.19 million.
According to the commission, nonresident reinsurers through brokers received UAH 347.071 million for reinsurance under 112 contracts, while in the first half of last year, UAH 630 million under 152 contracts was transferred. Payments were made in the amount of UAH 35.762 million (UAH 196.7 million in the first half of 2018). The remuneration of brokers amounted to UAH 11.360 million (a fall of 20%).
In January-June 2019, insurance companies of Ukraine collected net premiums in the amount of UAH 20.121 billion, which is 20.1% more than for the same period in 2018, the gross insurance premiums collected by insurers for the specified period amounted to UAH 27.291 billion (a 16.5% increase compared to the first half of 2018).
According to the regulator, the total number of insurance companies in Ukraine as of June 30, 2019 decreased by 42 and amounts to 249, including 26 life insurance companies.

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UKRAINIAN LOW COST AIRLINE SKYUP STARTS FLIGHTS FROM KYIV TO LVIV

Ukrainian low cost airline SkyUp (Kyiv) on October 17 launched Kyiv-Lviv flights.
The press service of the airline reported that before October 26, 2019, the flights will be operated twice a week – on Thursdays and Sundays. From October 27, the number of flights will increase to four per week – on Mondays, Tuesdays, Fridays and Sundays. The cost of a ticket without baggage starts from UAH 508.
“Today, we have launched flights between two Ukrainian cities with million population – Kyiv and Lviv… We will continue further developing internal flights, because this is one of the priority areas of our strategy,” the press service of SkyUp airlines said, citing CEO Yevhen Khainatsky.
In addition, SkyUp said that also on October 17, 2019, Kharkiv-Lviv flights were launched.
SkyUp Airlines LLC was registered in Kyiv in June 2016. The founder is ACS-Ukraine LLC of Tetiana and Yuriy Alba, who also own JoinUp! tour operator.

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