Business news from Ukraine

Business news from Ukraine

MHP ACQUIRES 90% OF SHARES IN PERUTNINA PTUJ FOR EUR 221 MLN

Myronivsky Hliboproduct (MHP) has announced that it has reached a final settlement price of EUR 221.095 million with Slovenian Steel Group (SIJ) to acquire Perutnina Ptuj, a leading poultry meat and a meat-processing company headquartered in Slovenia.
According to a company report, the price per share is EUR 22.34. SIJ held 9.897 million shares in the Slovenian company. The acquisition was completed in February 2019 subject with final purchase price defined based on audited financial statements of 2018. MHP has now completed this process and has today confirmed a 90.69% stake in Perutnina Ptuj.
“The company is undertaking a full assessment of Perutnina Ptuj’s production facilities and will reveal a full modernisation plan later this year during roadshow/meeting with stakeholders both in Slovenia and London together with top management of both companies,” MHP said.
MHP is the largest poultry producer in Ukraine. It also deals with production of grain, sunflower oil, meat goods.

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1,400 HOUSEHOLD SOLAR POWER PLANTS INSTALLED IN UKRAINE IN Q1

In January-March 2019, 1,393 Ukrainian households installed PV modules with a total capacity of 33 MW, Director of the renewable energy department of the State Agency for Energy Efficiency and Energy Saving of Ukraine Yuriy Shafarenko has written on his Facebook page.
According to him, thus, by the beginning of April their total number reached 8,850 families, and the total installed capacity was 190 MW, which is about 20% more than it was at the beginning of the year.
The capacity of home solar power plants is an average of 21.5 kW per family.
The largest number of plants was installed in Dnipropetrovsk (1,072 families, 25 MW), Kyiv (904, 25 MW), Ternopil (808, 21 MW), Ivano-Frankivsk (50, 13 MW) and Kirovohrad regions (562, 15 MW). Shafarenko said that the greatest activity is observed in those regions where local support programs are in effect, providing for compensation of a part of the cost of equipment (from 10% to 30%).
As reported, the number of Ukrainian households that installed PV panels in 2018 more than doubled (by 4,500) and reached 7,500; the total capacity of the equipment installed by them reached 157 MW by the end of 2018.

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ZELENSKY TEAM PREPARES BILL REIMPOSING LIABILITY FOR ILLEGAL ENRICHMENT

Ukrainian President-elect Volodymyr Zelensky has told Lithuanian Foreign Minister Linas Linkevicius that his team had prepared a bill reimposing liability for illegal enrichment.
At the meeting Linkevicius reminded that the West was watching especially closely anti-corruption efforts in Ukraine, Zelensky’s press service said. “The decriminalization of illegal enrichment runs counter to Ukraine’s obligations to the European Union,” Linkevicius said.
Zelensky also asked for help with setting up an international media organization to broadcast pro-Ukrainian position to the temporarily occupied Ukrainian areas.
He thanked Lithuania for consistently defending Ukraine’s interests in Europe.
Linkevicius in turn congratulated him on winning the election and offered help with implementing reforms in combating corruption and the law enforcement system.
European organizations in Brussels are very interested in the Ukrainian president-elect, Linkevicius said, offering Zelensky to visit EU-level international events at the first opportunity.

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FOUNDER OF MANDARIN PLAZA WANTS TO BUY OCEAN PLAZA MALL IN KYIV

The founder of Mandarin Plaza company, investor and developer in Lavina, Blockbuster, Ocean Mall and other shopping centers, Vagif Aliyev, has said that he plans to acquire Ocean Plaza mall by autumn 2019.
“We are still negotiating. I think we will buy first phase of Ocean Plaza by the autumn… and connect with Ocean Mall shopping center. Therefore, please, those [shops] which are located in Ocean Plaza, please consider Blockbuster and Lavina, because I think I will buy it by the autumn. I will not leave any brand there [in Ocean Plaza shopping center], no matter what it is. I think all contracts will be terminated because we are moving systematically, and with this system we will go across Ukraine,” the businessman said during a closed-up tour for retailers at the Blockbuster Mall shopping center.
According to him, the opening of the first phase of the Blockbuster shopping center is scheduled for May 31, the launch of the second phase is planned for the autumn.
As reported, in February 2019, Board Chairman of Mandarin Plaza, developing the chain of shopping and entertainment centers Lavina, Blockbuster, Ocean Mall and others, Oleksandr Chernitsky told Interfax-Ukraine that the company is holding talks with TPS Real Estate on the acquisition of the Ocean Plaza mall.

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SHARE OF VACANT SPACE ON OFFICE REAL ESTATE MARKET IN KYIV FALLS BY 0.4% POINTS

The share of vacant space on the office real estate market in Kyiv in the first quarter of 2019 fell by 0.4 percentage points (p.p.), reaching 7.2%, the press service of Jones Lang LaSalle (JLL) in Ukraine has reported. “We expect a further decline in vacancy, although not significant. On the one hand, the low commissioning volume that has been observed on the market since 2015 and steady demand contribute to the absorption of space in existing buildings, on the other hand, rising rental rates restrain the activity of tenants,” Head of office Group at JLL, Alexandra Globina said.
The highest rental rates in class A facilities in the first quarter of 2019 increased 6%, to $32 per sq. m. a month, which corresponds to the value of five years ago, according to JLL. At the same time, rental rates in class B facilities also increased to $25 per sq. m. a month.
According to JLL, a decrease in vacancy and an increase in rental rates have led to a gradual increase in developer activity.
The total volume of transactions in the office real estate market in Kyiv in the first quarter of 2019 amounted to 22,500 square meters, with about half of the transactions accounted for IT-companies, JLL experts said.

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UKRAINIAN STATE FOREST AGENCY LOGGES 3.8 MLN CUBIC METERS OF WOOD IN Q1 2019

Ukrainian State Forest Agency logges 3.8 mln cubic meters of wood in Q1 2019
KYIV. April 26 (Interfax-Ukraine) – Enterprises of the State Forest Resources Agency of Ukraine logged 3.8 million cubic meters of wood in the first quarter of 2019, which is 7.8% less year-over-year.
The agency said in a press release on Thursday that total round wood sales in January-March 2019 on the domestic market accounted for 2.9 million cubic meters. No cubic meter of wood was sold on the foreign market.
Forest enterprises over the period saw UAH 3.9 billion of net sales revenue, which is 3% less than a year ago. One of the main reasons for the decline in the indicator is a fall in the demand on the domestic market.
As of April 1, 2019, a total of 1.2 million cubic meters of ending stocks were at warehouses of forest enterprises, which is 32% more compared with ending stocks as of early 2018.
As reported, the enterprises of the agency logged 16.5 mcm of wood (a rise of 3.7% compared with 2017). The state forest agency sold 13.7 mcm of round wood to the domestic market (a rise of 9%).
The total area of forest areas in Ukraine is almost 10.4 million hectares, the forest cover of Ukraine is 15.9%. Some 7.6 million hectares of forests (73% of the forest fund of Ukraine) are subordinate to the State Forest Resources Agency.