Business news from Ukraine

Kamianske distillery in Cherkasy region is up for auction for UAH 6.6 mln

The State Property Fund (SPF) of Ukraine has put up for privatization the Kamianske distillery in Cherkasy region, the press service of the agency reports.

It is specified that the starting price of the enterprise is UAH 6.6 million. The auction will be held in the Prozorro.Sale system on March 22, with bids accepted until March 21.

The facility includes 49 units of real estate and infrastructure (production, administrative, warehouse buildings and structures). The production area is 25,719.4 square meters.

According to the Charter, the main activity is distillation, rectification and mixing of alcoholic beverages. The average number of employees as of September 30, 2023 was seven. The company ceased operations in 2010 and does not carry out production activities. Property, plant and equipment are excessively worn out.

Accounts receivable as of September 30, 2023 amounted to UAH 3143 thousand; accounts payable amounted to UAH 9766 thousand, in particular: for goods, works, services – UAH 5803 thousand, for settlements with the budget – UAH 1487 thousand, for payroll settlements – UAH 1190 thousand, for insurance – UAH 510 thousand, other debts – UAH 786 thousand.

Kamianske Coke provides water supply, sewerage and electricity services to residential buildings, which are accounted for on the company’s balance sheet and are not subject to privatization.

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Kholminsky distillery in Chernihiv region is up for auction

The State Property Fund (SPF) of Ukraine has put up Kholminsky distillery in Chernihiv region for privatization, the press service of the agency reports.

It is specified that the starting price of the lot is UAH 15.35 million. The auction will be held in the Prozorro.Sale system on March 20, with bids accepted until March 19.

Kholma Distillery is an operating enterprise located in the village of Kholma, Koryukiv district, Chernihiv region. Its main activity is distillation, rectification and mixing of alcoholic beverages.

According to the terms of the sale, the buyer of the distillery is obliged to pay off overdue accounts payable for goods, works and services in the amount of UAH 3.5 million and prevent dismissal of employees for six months.

Construction of Kholminsky distillery began in Soviet times. Since 1951, the company has been accepting potatoes for processing. In the 60s of the last century, the plant held a leading position in the industry. Today, it is in need of reconstruction and investment.

The unified property complex includes 101 registered real estate units: production, warehouse, administrative buildings and structures, transformer substations, artesian wells, grain tanks, railroad tracks, etc. The state-owned enterprise has 16 vehicles and special equipment. The distillery also owns 192 items of movable property, including equipment, furniture, inventory, computer and office equipment, etc.

The total area of the six land plots under the complex is 28.36 hectares.

As of October 1, 2023, a part of the company’s real estate with an area of 727.9 sq m was leased. According to the agreement, the lease term is until May 9, 2024.

In addition, the company leased 26 units of technological equipment and a 0.04-hectare land plot in Novhorod-Siverskyi, Chernihiv region, for a period of 30 years.

At the same time, the state-owned enterprise has an object on its balance sheet that is not subject to privatization: a storage facility (radiation shelter – IF-U) with a total area of 93.1 square meters, built in 1974. It is located separately from other buildings.

According to the Fund, distilleries are among the most popular small-scale privatization assets. Since September 2022, the SPF has sold 14 distilleries and raised UAH 965 million to the state budget, with the average price of each property at auction tripling.

The SPF planned to complete the privatization of the alcohol industry in 2023, for which it was planned to hold online auctions for the sale of 26 distilleries across the country. However, some of them did not take place.

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Belgorod-Dniester Commercial Sea Port is put up for auction again

The State Property Fund of Ukraine (SPFU) has announced a privatization auction for the sale of the integral property complex of the State Enterprise Belgorod-Dniester Commercial Sea Port (SCP) on March 21 at a starting price of UAH 183.9 million, the press service of the agency reports.

Last year, the Fund tried several times to sell this property: first, it put it up for sale on March 3 for UAH 187.57 million, then lowered the starting price to UAH 93.78 million, the auction was won by Ukrdoninvest LLC of businessman Vitaly Kropachev, but it then refused to buy at the stage of agreeing on the terms of the sale agreement, and further attempts to sell it in June with a price reduction to UAH 92.46 million failed due to the lack of bids.

Bilhorod-Dnistrovskyi ICC is an international universal transportation hub specializing in transshipment of timber, bulk, construction and grain cargoes, as well as iron ore pellets and metal products. Transshipment is carried out both by land and sea vessels and in the opposite direction.

According to the report, the asset is located on a territory of 64.4 hectares. It consists of 59 hectares of the main production area of the port of Bilhorod-Dnistrovskyi and 5.4 hectares of the Buhaz port point located in the village of Zatoka. The total area of buildings is 31.3 thousand square meters.

Ships call at the port through the 1.5 km long approach channel of the offshore part of the Dniester-Tsarhorod estuary and the 14.5 km long Dniester-Liman part. The depth of the approach channel is 3.0 m (3.5-4.5 m according to the passport).

The port has its own railroad tracks, as well as engineering networks: water supply, heating, 0.4 kW cable lines and 10 kW high-voltage lines.

According to the SPF, the auction terms require the buyer to pay off wage and budget arrears. As of September 30, 2023, this total debt amounted to UAH 105.5 million. The buyer also has to pay VAT in the amount of 20% of the final value of the property.

If the auction is successful, the Bilhorod-Dnistrovskyi ICC will become the second major port infrastructure facility to be sold on the Prozorro platform since the beginning of the full-scale Russian invasion.

As reported earlier, the SPF sold the integral property complex of the Ust-Dunay port for UAH 200 million on the Prozorro electronic platform. During the auction, its price tripled. The winner was Elixir Ukraine LLC.

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SPFU to hold auction for Volyntorf with starting price of UAH 190.2 mln

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.

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SPF puts Zarubinsky distillery up for auction

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.

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State Property Fund of Ukraine has scheduled repeat auction for sale of Belhorod-Dnistrovskyy port

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.

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