The State Property Fund of Ukraine (SPFU) announced an auction on 6 August to privatize a 97.5458% stake in the authorized capital of Zaporizhzhya Aluminium Smelter (ZalK). According to the SPF press release, an online auction for the privatization of 607 million 446,012 thousand shares is scheduled for August 6. The auction will be held in the electronic trading system Prozorro.Sale with a starting price of almost UAH 151.9 million, and the deadline for submitting bids is August 5.
It is noted that ZALK is an excellent brownfield project, as it is located in Zaporizhzhia, next to the national highway H08. The facility’s advantages include a large total area of premises and land. The new owner may consider the facility for business or its relocation.
The JSC’s balance sheet includes 1497 registered units of real estate and infrastructure with a total area of 370,929.85 square meters. The property also includes 291 units of vehicles and special equipment. The real estate owned by the JSC is located on 25 registered land plots with a total area of 216.0856 hectares.
As of May 31, 2023, part of the company’s real estate with a total area of 6,755.6 sq. m. was leased out under eight agreements with the maximum term of validity until September 1, 2065.
The company’s balance sheet includes 18 state-owned objects that were not included in the company’s authorized capital and remained in state ownership (two shelters, instruments, radio stations, engineering networks, roads, etc.)
The company has debts, including overdue accounts payable of UAH 6.44 billion.
Under the terms of the auction, the new owner is obliged to ensure repayment of wage arrears and budget arrears within 18 months from the date of transfer of ownership, as well as to prevent dismissal of ZalK employees within six months, in accordance with the requirements of Articles 40 and 41 of the Labor Code of Ukraine.
For more information about ZALK JSC, please follow the link: http://surl.li/oyxgsp
Zalc used to be the only primary aluminum producer in Ukraine. In 2004, the Russian group SUAL became the owner of Zalc. In 2007, the plant came under the control of UC RusAl, which was created as a result of the merger of aluminum and alumina assets of RusAl, SUAL and Swiss trader Glencore. In the long-running lawsuits, a verdict was reached on the termination of the sale and purchase agreements for 68.01% of ZalK’s shares and the return of this stake to state ownership. The authorized capital of ZALK JSC is UAH 155 million 682.28 thousand, with a share price of UAH 0.25.
