The Ukrainian government has approved the terms of a tender for the sale of United Mining and Chemical Company with a starting price of UAH 3.7 billion.
The government informed Interfax-Ukraine that the Cabinet of Ministers adopted the corresponding decision at a meeting on June 16.
Earlier that day, the State Property Fund at the Ukraine.30 forum announced the holding of this tender in August this year.
Head of the State Property Fund Dmytro Sennychenko explained to the Interfax-Ukraine agency on the sidelines of the forum, the fund submitted the necessary documents to the government on April 27.
“We have done our job. As soon as the Cabinet of Ministers makes a decision, it will take two months until the auction,” Sennychenko said.
United Mining and Chemical Company state enterprise began its actual activity in August 2014, when the government of Ukraine decided to transfer to its management the property complexes of Vilnohirsk Mining and Metallurgical Plant (Dnipropetrovsk region) and Irshansk Mining and Processing Plant (Zhytomyr region). Then it was transformed into PJSC, and then – into PrJSC.
The State Property Fund of Ukraine (SPF) hopes for an increase in value during the expected July privatization tender of United Mining and Chemical Company, which controls Vilnohirsk Mining and Metallurgical Plant (Dnipropetrovsk region) and Irshansk Mining and Processing Plant (Zhytomyr region), having previously determined the starting price of UAH 3.7 billion.
Head of the fund Dmytro Sennychenko said at a press conference that during the preparation of the company for privatization, a lot of work was done, noting that the preparation of large privatization objects lasts 9-11 months, together with professional advisers.
“The preparation work is coming to an end. The next step is the transfer to the Cabinet of Ministers, approval of the conditions of the starting price and other privatization conditions,” Sennychenko stated.
At the same time, he noted that the issue of removing the stamp “For official use” from the data on the reserves of minerals of this company has not yet been resolved: “the auction will take place in July, before that we hope to remove the stamp “For official use” from the reserves of the company.”
Deputy head of the SPF Taras Eleiko, in turn, expressed confidence that the cost of the company will increase during the auction.
“We believe that the price will be higher at the tender,” he said.
Artur Somov, the acting chairman of the board of United Mining and Chemical Company, added that the company’s management has improved the situation with the sale of products: if earlier 95% of supplies were controlled by two companies, now the supplies are diversified. The financial condition of the company also improved.
