The State Property Fund of Ukraine (SPFU) is finalizing the list of large-scale privatization objects to be agreed with the Cabinet of Ministers and submitted to the auction commission, said Vitaliy Koval, head of the agency.
“Large-scale privatization is when an asset is worth more than UAH 200-250 million at its book value or starting price. Today, the official list has been approved, all large-scale privatization objects must go through the procedure of approval by the Cabinet of Ministers, be included in the list and transferred to the auction commission under the regulation of the minister, who will approve the data on the auction conditions,” he said at the Business Breakfast with Forbes Ukraine on Wednesday.
Koval named 66.65% of the Ocean Plaza shopping mall (Kyiv), which will be put up for privatization at a starting price of UAH 1.63 billion, and one of the pre-war leaders in the aerated concrete market, AEROC Investment Deutschland GmbH, with three production sites at a price of about UAH 1 billion, as the most valuable assets included in the list of large-scale privatization. Among the state-owned assets, the Ukraina Hotel (Kyiv) will be put up for privatization at a price of UAH 1.8 billion.
In addition, the assets of the United Mining and Chemical Company (UMCC), which has been given control of the Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipro region) and Irshansk Mining and Processing Plant (IGOK, Zhytomyr region), will be auctioned at a starting price of UAH 3.7-3.9 billion.
“We have a task from the Ministry of Finance – UAH 4 billion (to replenish the state budget in 2024 – IF-U). But I am confident that we will exceed it. The ambitious price is much higher,” said the SPF head.
Speaking about the target audience that the SPF is interested in transferring privatization objects into ownership, Koval said that the Fund manages a variety of assets: from a small shop, hair salon, service center and tailoring studio to large objects such as the UMCC. Accordingly, the target audience is very diverse – from individuals to corporations.
“A very cool client for us is someone who comes for the second, third, or fourth time. In addition, when it comes to international business, international groups that already have business in Ukraine, understand the country’s agenda, and are familiar with the context and feel the microclimate are of the greatest interest. Such clients are very important to us. As well as domestic investors who have small and medium-sized businesses – they are needed,” summarized the head of the SPF.
