Horizon Capital, a leading private equity firm in Emerging Europe, has increased its stake in Datagroup, Ukraine’s leading fiber infrastructure and digital services provider, from 73.46% to 96.13%, via its $370 million fund, Emerging Europe Growth Fund II, L.P. (EEGF II).
The deal participants said in a joint press release published on Thursday that EEGF II is pleased to be the sole investor in Datagroup, alongside CEO Mykhailo Shelemba, who holds 3.87%.
As a result of this transaction, the company’s founder Oleksandr Kardakov, and other minority investors, have fully exited Datagroup. Financial details of this deal were not disclosed.
“Since assuming operational control of the company in 2016, Datagroup has completed a full business turnaround, reducing net debt to EBITDA by 9 times to a low 0.3 level today, and delivering over 20% compound annual growth in EBITDA. Datagroup continues to invest heavily into CAPEX, embarking on a network modernization program that will enhance further the high quality of services and innovation provided to its valued clients,” Horizon Capital Principal Dmytro Boroday, who leads this transaction at Horizon Capital, Said.
He also said that Datagroup has boosted its leading position in B2B, wholesale, international traffic and satellite communication segments, and is poised to deliver continued solid growth, both organically and through M&A.
“I am proud of the company’s results and the successful transformation that has taken place over the past four years. I am pleased that the company has strengthened its partnership with Horizon Capital, an investor that has backed Datagroup for many years, and wish them success in their strategic ambitions. I am confident that, together with management, they will take Datagroup forward to a new stage of growth and development,” Oleksandr Kardakov, founder and former shareholder of Datagroup, said.
The money supply in Ukraine in October 2020 increased 2%, to UAH 1.757 trillion, according to preliminary data of monetary statistics on the website of the National Bank of Ukraine (NBU).
According to the data, the monetary base (reserve funds) over the past month grew by 2.4%, to UAH 581.722 billion.
The central bank also said that off-bank funds (M0) in October also expanded by 2.2%, to UAH 485.906 billion.
According to the NBU, the deposit portfolio of banks over the past month increased 1.9%, to UAH 1.268 trillion, in particular, in national currency it grew by 2.6% (to UAH 764.932 billion), and in foreign currency by 0.5% (to UAH 502.980 billion).
At the same time, the loan portfolio of banks in October decreased 2%, to UAH 958.34 billion, including in the national currency – 1.8% (to UAH 595.417 billion) and in foreign currency – 2.3% (to UAH 362.923 billion ), the bank said.
According to the central bank, net forex reserves narrowed by 2.7% in October, to $15.368 billion.
Ukraine decreased the export of titanium containing ore and concentrate in kind by 15.3% in January-October 2020 compared to the same period in 2019, to 437,702 tonnes.
According to statistics released by the State Customs Service, in January-October 2020, the export of titanium ore and concentrate in monetary terms decreased 15.1%, to $107.45 million.
Ukraine imported 890 tonnes of titanium ore for $748,000 during that period (711 tonnes of ore for $500,000 in January-October 2019).
Vilnohirsk state mining and metallurgical combine (Dnipropetrovsk region), Irshansk state mining and processing combine (Zhytomyr region), Valki-Ilmenite and Mezhdurechensk Mining and Concentration Complexes (both are located in Irshansk, Zhytomyr region) are the main producers of titanium ore in Ukraine.
Dnipro-based Velta production and commercial firm built a mining and processing complex at the Birzulivske ilmenite deposit, which has a 240,000-tonne ilmenite concentrate capacity per year.
Holding company Velta Group Global Ltd. was registered in London in November 2011.
Electricity production in the united energy system of Ukraine in January-October 2020 decreased by 5.4% (by 6.888 billion kWh) compared to the same period in 2019, to 119.819 billion kWh, the Ministry of Energy has told Interfax-Ukraine.
Nuclear power plants (NPP) for the ten months of this year reduced electricity generation by 6% compared to the same period last year, to 63.030 billion kWh. In particular, production of electricity at Zaporizhia NPP amounted to 22.248 billion kWh (29.6% less compared to January-October 2019), Yuzhnoukrainsk NPP some 15.126 billion kWh (6.9% more), Rivne NPP some 15.929 billion kWh (6.5% more), Khmelnytsky NPP some 9.727 billion kWh (up by 52.5%).
Thermal power plants (TPP), as well as combined heat and power plants (CHPP) and cogeneration plants reduced their output by 16.2%, to 39.317 billion kWh. In particular, the generating companies of TPPs reduced production by 23.7%, to 29.544 billion kWh, while CHPP and cogeneration plants increased it by 19.3%, to 9.774 billion kWh.
Hydro power plants and pumped storage power plants reduced production by 6.1%, to 6.237 billion kWh, and block stations increased by 8.2%, to 1.601 billion kWh.
Electricity production by non-traditional sources (wind power plants, solar power plants, biomass) increased by 2.1 times, to 9.634 billion kWh.
The share of nuclear power plants in the structure of electricity production amounted to 52.6%, TPPs, CHPPs and cogeneration plants 32.8%, hydro power plants and pumped storage power plants 5.2%, block stations 1.3%, alternative sources 8%.
Ukrzaliznytsia intends to increase investments in rolling stock and infrastructure, Head of the Freight Transportation division of Ukrzaliznytsia, Irakli Ezugbaya, has said.
“So, if this year capital investments will amount to UAH 4.8 billion, then next year we plan to invest UAH 25.8 billion, in 2022 some UAH 28.4 billion, and in 2023 some UAH 41.1 billion. Due to this, we will be able to provide our customers with equal access to the infrastructure and not refuse any of them along with the transportation of goods that can be placed at Ukrzaliznytsia,” he said in an interview with the Centre for Transport Strategies.
At the same time, Irakli said that Ukrzaliznytsia constantly needs to increase its operating profit.
“In 2020, EBITDA margin indicators are planned at 9.1%. By 2023, we want to increase these indicators to 30%. In my opinion, the cargo business unit should significantly improve its indicators in order to compensate for potential losses from other areas, including passenger transportation. Therefore, in order to reach 23% of EBITDA in 2021, we must reach at least 30% in the cargo direction,” he said.
As reported, Ukrzaliznytsia intends to provide UAH 4.1 billion in the company’s financial plan for 2021 for the overhaul of locomotives.
In 2019, Ukrzaliznytsia increased its net profit by about 14.7 times, to UAH 2.988 billion (UAH 203.85 million in 2018). EBITDA of Ukrzaliznytsia for 2019 increased by 6%, to UAH 17.3 billion compared to the results of last year.
Gross insurance premiums of PJSC Insurance Company Krayina (Kyiv) in January-September 2020 amounted to UAH 392.6 million, which is 24.6% more compared to the same period in 2019, the Expert-Rating agency said, reporting on the renewal of the company’s rating at the level “uaAA + ” on the national scale for the specified period.
According to the report, the share of the company’s insurance premiums held by reinsurers decreased by 19.30%, and their share in the company’s gross premiums fell to 2.29%.
In the three quarters of 2020, the company made 20.48% more insurance payments and compensations than in the three quarters of 2019 – UAH 182.8 million. The level of payments during the specified period decreased 1.59 percentage points, and at the end of the first nine months of 2020 amounted to 46.56%.
As of September 30, the equity capital of Krayina grew by 33.85%, to UAH 155.050 million, and gross liabilities – by 3.79%, to UAH 137.33 million. Due to a significant excess of the growth rate of equity capital in comparison with the growth of the company’s liabilities, the level of coverage by equity capital of the insurer’s liabilities increased 25.36 percentage points, to 112.91%.
The volume of cash and cash equivalents in the accounts of Krayina as of September 30, 2020 amounted to UAH 88.050 million, which is 37.75% more than as of the same date in 2019. Significant cash growth rates amid insignificant growth of the insurer’s gross liabilities led to an increase in the rate of coverage of the company’s liabilities by 15.80 percentage points, to 64.11%.
In the reporting period, profit from operating activities increased 1.86 times, to UAH 39.910 million, and the company’s net profit increased 3.32 times and amounted to UAH 25.860 million.
The agency said that, according to the reports provided, during the analyzed period, the insurer adhered to the criteria and standards of solvency and capital adequacy, liquidity, profitability, asset quality and the riskiness of the insurer’s operations established by law.
