On October 6, the State Property Fund of Ukraine (SPFU) will hold a privatization auction for the sale of state-owned enterprise Volyntorf with a starting price of UAH 190.2 million, according to the Fund’s website.
The auction will be held on Prozorro, and the guarantee fee for participation in the auction is UAH 38 million (excluding VAT).
“The State Property Fund already has experience in the successful sale of a state-owned peat enterprise. In early July, the SPFU held an auction for the sale of RivneTorf, during which 12 bidders competed. As a result, the starting price increased 4.3 times, to UAH 205 million,” the website quoted the SPFU’s deputy chairman, Sergiy Simonov, as saying.
According to the fund, Volyntorf is a profitable enterprise specializing in the production of peat briquettes. In the first half of 2023, the state-owned enterprise received UAH 90.4 million in revenue and UAH 6.2 million in net profit, and UAH 200 million and UAH 10.6 million in 2022, respectively.
As of June 30, 2023, Volyntorf had no overdue accounts payable, with current accounts payable amounting to UAH 20.2 million, including UAH 8.9 million in settlements with the budget and UAH 2.6 million in payroll.
In total, the facility includes 109 real estate units (production, warehouse, and administrative premises) with a total area of over 21 thousand square meters. The company employs 302 people and owns 164 vehicles. Volyntorf also includes a separate division, Manevychi Peat Plant.
The state-owned enterprise has special permits for subsoil use at the Zasvity Sitneluk field for 18 years and the Soyne field for 19 years.
“Peat is not a strategic fuel for the energy sector of Ukraine. Its total share in the country’s energy balance is less than one percent, according to the State Statistics Service. Therefore, the SPFU is gradually putting state-owned peat enterprises up for privatization auctions,” the SPFU explained.
As reported, on July 5, the SPFU sold RivneTorf at an online privatization auction in the Prozorro system for UAH 205 million at a price 4.3 times higher than the starting price.
The State Property Fund (SPF) has put up for sale the Zarubinsky distillery in Ternopil region. The starting price is UAH 245.4 million, the press service of the fund reported.
“The company’s main products are ethyl alcohol and denatured alcohol, including bioethanol,” the SPF said.
According to the report, the facility has 58 units of real estate with a total area of 28.8 thousand square meters, which are located on four land plots with a total area of 23.5 hectares. The company’s vehicle fleet includes 27 units. The plant employs 129 people.
The volume of sales of products (works, services) (including exports) for the period 2020 – the first half of 2023 amounted to UAH 909.5 thousand, including exports – UAH 835.5 thousand.
As of June 30, 2023, accounts payable amounted to UAH 374,681 thousand, of which UAH 210,144 thousand is overdue. Staff salary arrears amounted to UAH 732 thousand.
The auction is scheduled to take place in September. The exact date will be announced later.
The State Property Fund (SPF) of Ukraine has scheduled a second auction for the sale of Belgorod-Dnistrovsky Commercial Sea Port (BSP) for August 15 with a starting price of UAH 92.45 million.
According to the FGI website, the auction previously scheduled for June 14, before which the starting price of the object was halved to 92.46 million (excluding VAT), was not held due to the lack of bidders.
The winner of the previous auction for the sale of Belgorod-Dnestrovskyi ICC, which took place on March 13, Ukrdoninvest LLC of businessman Vitaliy Kropachev refused to buy the port at the stage of agreeing the terms of the sale and purchase agreement with the regional department of the Federal State Property Management Agency for Odessa and Mykolayiv regions. The company specified that the sale price of the port at the auction, which it won was UAH 264.12 mln (including VAT). It was also reported that Ukrdoninvest did not demand the return of the guarantee fee in the amount of UAH 18.76 million.
The FGI reported that it will re-run the privatization auction for the sale of “Belgorod-Dnistrovskyi ICC” in connection with the recognition of the auction at which it was sold to “Ukrdoninvest” failed: the winner of the auction did not contribute funds for the object, the press service of the Fund reported.
The first auction for the sale of the port with a starting price of UAH 187.57 million, scheduled for March 3, was not held.
Earlier, the FGI noted that the port of Belgorod-Dnistrovsky founded in 1971 is unprofitable, but since 2022 the enterprise “plays an important role in ensuring world food security as a logistics center for ports on the Danube”. In the first quarter of 2023, the port’s total revenue amounted to UAH 7.391 million. At the same time, the loss for this period amounted to – UAH 4.45 million. The amount of overdue accounts payable as of March 31, 2023 – UAH 118.7 million, including wage arrears – UAH 11.5 million. The total debt on wages and payments to the budget amounts to UAH 96.37 mln, including penalty of UAH 1.7 mln.
In 2022, Belgorod-Dnistrovsky ICC received 63 thousand UAH of profit against losses of 28.5 million UAH in 2021 and 25.2 million UAH in 2020.
The port provides loading and unloading services for the main cargo nomenclature: timber cargo, mineral fertilizers, iron ore pellets, metal products. It works with timber and grain cargoes destined for export.
The regional department of the State Property Fund in Kiev sold at auction a single property complex of SE “Elektronmash” (Ring Road, 4) for nearly 121 million UAH, while the two previous failed auctions for its sale could bring the budget 970 million UAH and 430 million UAH.
“Despite the air raid and rocket attacks, the auction to privatize the Electronmash plant took place. Another advantage of electronic bidding on the platform “Prozorro. Sales” platform – entrepreneurs can compete for assets while in hiding,” the press service of the State Property Fund said.
According to the press release, a single property complex was put up for privatization, totaling 110.7 thousand square meters. m of real estate and more than 200 thousand square meters. m of land. In the capital, Electronmash has 36 pieces of property, including shops and administration buildings. The company has 31 vehicles and a recreation base in the village of Sokolovka, Chernigov region.
In the auction was attended by 6 entrepreneurs. The final bid at the auction almost doubled.
The winner was LLC “Incom Rent” with a bid of 120.81 million UAH. As reported in the release, in addition to the winning bid the winner must pay the VAT – 24.2 million UAH and more than 23 million UAH of the debt to employees and the state budget.
The winner has 20 working days to pay the cost of the lot.
According to Youcontrol, LLC “Incom Rent” was founded in 2018, the authorized capital is 1 thousand UAH. The founders of the company are AMC Arivo Asset Management LLC in the interests of PVNZIF Arivo Corporate (60%) and Plates-1 LLC (40%). Lyudmila Yakovleva and Oleg Magalyas are named as beneficiaries.
The second highest bidder at the auction was BSK GROUP LLC – UAH 120.777 million. According to Youcontrol, the company was founded in 2013 with a share capital of 1 thousand UAH. The ultimate beneficiary is indicated as Oleksandr Sokor.
As reported, this is the third attempt to privatize Elektronmash. The previous two auctions for its sale could bring significant investments into the budget – UAH 970 million and UAH 430 million, but unscrupulous investors did not complete the purchase within the prescribed period.
Electronmash” SE (previously – State Scientific Production Enterprise “Electronmash”) was created on the basis of the plant of electronic computing and control machines, which since 1965 provided the Soviet Union with the computing equipment.
In recent years it showed significant damage. In 2022, Elektronmash suffered 8.2 million hryvnias in damages, in 2021 it suffered 24 million hryvnias and in 2020 it suffered 10.9 million hryvnias. The number of employees at the plant is decreasing: if in 2020 there were 175 employees, in 2021 there will be already 149, and in 2022 there will be 127.
At present, the main specialization of the plant is the production of electric motors, generators and transformers, as well as metalwork turning services.
In recent years, it has produced, in particular, automatic gas metering systems, commercial metering and payment systems for energy resources and utilities.
The auction house expects to gain $ 2-4 million for the sneakers, which played Jordan in one of the games of the final of the National Basketball Association (NBA) in 1998, and $ 100-200 thousand for the shirt in which Pele made his debut for the “New York Cosmos” in 1975.
The basketball player’s sneakers could become the most expensive in history, surpassing the $1.8 million Air Yeezy rapper Kanye West sold for in 2021.
In addition, with an estimate of $400,000 to $600,000, a warm-up jersey of basketball player Kobe Bryant is up for auction. He wore it on the day of the game, where he scored 81 points (the second highest score in NBA history).
In addition, at the auction Victoriam you can buy things tennis players Rafael Nadal and Roger Federer and basketball with the autographs of Bryant and the former U.S. president Barack Obama.
The auction ends April 11.
The Formula 1 cars of Michael Schumacher and Jean Alesi were sold for €1.3m and €3.66m respectively.
Both cars were sold at an auction in Paris. Schumacher’s Jordan 191 is not just the car in which the seven-times world champion drove – it was the first Formula 1 car he ever drove. In 1991, the German replaced Bertrand Gachot, who had been jailed for spraying in the face of a cab driver the year before.
Schumacher had never competed in a Formula 1 grand prix before, but managed to qualify seventh, beating teammate Andrea De Cesaris. The race itself was less successful, with him losing the race on the first lap due to technical problems, but it paved the way for the future champion to enter Formula 1.
The Jordan 191 was sold just 18 months ago, but earlier this year it was revealed that the car would return to auction.
Despite the historic value of the Jordan 191, the most expensive car at the auction was a Ferrari 643, which went under the hammer for 3.66 million euros. The car was driven by French racer Jean Alesi in 1991 and he only managed to win one Formula 1 grand prix during his career.
The Ferrari 643 was introduced mid-season and was not a car capable of winning the championship. Alesi’s teammate, four-time champion Alain Prost was even fired before the last race of the season because he publicly stated that driving this car was the same as driving a truck.
