Latvia’s Lattelecom plans to occupy 12% of the Ukrainian cloud service market in 2018, Director for Business Development Data Processing Centers Maris Sperga has told Interfax-Ukraine.
“The market growth of cloud services in 2018 is planned at the level of 12-13% – not as large as last year. We plan that this year we will grow to 12% of the Ukrainian market. This is our goal, to which we are going,” he said.
According to Sperga, the company has been active in Ukraine for five years and during this time has reached volumes of 10% of the cloud services market in Ukraine.
“Last year was very positive for us: on the Ukrainian market we grew by about 40%, taking into account the fact that the market itself grew by 27%, which means that we outstripped its growth and were able to gain an additional share in the market,” he said.
Sperga also said that according to the International Data Corporation (IDC) research company, the Ukrainian market of cloud technologies is about $16 million.
Lattelecom has been operating in the Ukrainian market since 2013.
In 2016, Ukrtelecom agreed with Lattelecom to start cooperation on providing Ukrainian companies with the possibility of renting virtual servers or the “cloud” data center of Lattelecom located on the territory of the EU in Riga.
Cadogan Petroleum, the British oil and gas company with assets in Ukraine, has commenced drilling the shallow Vovche-2 well on the Bitlianska license (Lviv region), the company has reported on the website of the London Stock Exchange (LSE).
Cadogan said that the well is anticipated to take 20 days to drill and will then be put on production if successful. The well is designed to test the potential of satellite prospects around an established, old oil field.
A heavier rig is being selected to drill the Blazh-10 well on the Monastyretska license (Lviv region) as planned at a depth of about 3,500 meters. The well is expected to spud in November and is anticipated to take three months to drill, the company said.
The Vovche-2 well and the Blazh-10 well fulfil the company’s remaining commitments on the Bitlianska and Monastyretska exploration licenses, a prerequisite to convert them into production licenses.
State-run Oschadbank and Ukreximbank have put rights of claim under a loan agreement with Kyiv-based Gulliver shopping mall’s mortgage up for sale through SETAM’s OpenMarket system for UAH 18.177 billion.
The lot includes a 1.14 ha plot of land on Kyiv’s Sportyvna Square, a trading and office complex with a parking lot with a total area of 151,800 square meters, a 0.11 ha plot of land for construction of a new trading and office complex, and 100% of corporate rights in the borrower’s charter capital, says an announcement posted on the trading platform.
The auction is scheduled for October 16. Bids are accepted until October 15.
The TAS Group of Sergiy Tigipko has reached a preliminary agreement on acquisition of PrJSC Kuznya on Rybalsky Plant (both based in Kyiv), the press service of the group told Interfax-Ukraine on Thursday.
“At the current stage an application to buy shares in PrJSC Kuznya on Rybalsky Plant has been submitted to the Antimonopoly Committee of Ukraine. After receiving a permit from the regulator, the sides plan to continue finalizing the deal,” the press service said in response to the official inquiry by Interfax-Ukraine.
“The cost of the deal and its terms are not disclosed. The TAS Group will announce its plans on the further development of the enterprise after receiving the permit from the Antimonopoly Committee of Ukraine,” the press service said.
According to the response to the inquiry, the preliminary agreement on the deal to buy shares in the shipyard was reached after holding negotiations between the TAS Group and the owner of Kuznya on Rybalsky Plant.
“The TAS Group is actively investing in the Ukrainian economy and considering those investment projects that meet its long-term development strategy,” the press service said.
Kuznya on Rybalsky is a famous shipyard on the Ukrainian market. The key shareholder in the plant privatized in 1995 is the non-diversified corporate investment fund Prime Assets Capital (earlier Petro Poroshenko fund, Kyiv).
The gross occupancy of logistics real estate in the Ukrainian market in January-June 2018 increased by 43% compared to the same period in 2017 and amounted to approximately 100,000 square meters, according to statistics given in the study of CBRE Ukraine international consulting company (Kyiv). According to the CBRE Ukraine survey, the share of occupancy of warehouses by large retailers was 58%, by light industry, pharmaceutical and medical companies some 26%. About 62% of rental transactions were associated with relocation or extension.
The share of large transactions (more than 10,000 square meters) was 23% and was represented by leasing 20,000 square meters by Comfy in the Raben warehouse complex near Kyiv, as well as 20,000 square meters by Eldorado with the move to RLC Fozzy Distribution Center.
According to CBRE Ukraine, the vacancy rate in the first half of 2018 decreased by 2 p.p. and amounted to 4%.
The declared rent rates in A class warehouses at the end of the first half of the year were in the range of $4.6-6 per square meter a month. Effective rental rates in A class warehouse complexes ranged from $3.4 to $5.2 per square meter a month, while in B class warehouse complexes they stood at the level of $2.5-3.4, where the upper limit has grown by 13% since the beginning of the year. As a result of fluctuations in the exchange rate, rates in U.S. dollars were unstable, while most of the deals were signed in hryvnia.
Horizon Capital managed fund has entered into a transaction to acquire a minority stake in Intellias, a leading IT services provider with operations in Ukraine, headquartered in Lviv. With this backing, Intellias will expand its operations in Eastern and Central Europe, the IT company said in a press release on Friday.
The size of the stake and other details of the deal are not disclosed.
“We are delighted to attract Horizon Capital’s backing as we broaden our delivery footprint in Ukraine and beyond. Intellias is among the fastest-growing IT Services providers with operations in Ukraine, having expanded from circa 150 employees in 2013 to over 1,100 now,” Co-founder and CEO at Intellias Vitaly Sedler said.
According to the report, to increase its client service capabilities, Intellias is expanding its delivery hubs beyond Lviv, Kyiv, and Odesa, with Kharkiv and Ivano-Frankivsk next in development, as well as locations in Central and Eastern Europe.
“We view this investment as marking a new chapter in our development, allowing us to raise the bar even further, to the benefit of our customers and employee,” Co-founder and Chairman of the Board at Intellias Michael Puzrakov said.
Intellias was founded in Lviv, in 2002 and by 2018 has evolved into a strong supplier of software development services, with a core delivery base in Ukraine. Intellias has been consistently ranking among the highest scoring IT Services employers in Ukraine and the fastest growing IT Services providers, having expanded in size over 10 times during the last six years.
Intellias was co-founded by Sedler and Puzrakov and continues to be founder-run.
Horizon Capital was established in 2006. It manages private equity funds Western NIS Enterprise Fund (WNISEF, established in 1994 with a capital of $150 million), Emerging Europe Growth Fund, L.P. (EEGF, established in 2006 with a capital of $132 million) and EEGF II (EEGF, established in 2008 with $370 million capital).
The money of these funds is invested in projects in Ukraine, Moldova, and Belarus.
In June 2016, OPIC (Overseas Private Investment Corporation) said that the OPIC would provide up to $37.5 million to EEGF III launched by Horizon Capital
