Business news from Ukraine

AUCTION FOR SALE OF FREQUENCIES FOR 5G COMMUNICATION TO BE HELD IN UKRAINE NEXT YEAR

The auction for the sale of frequencies for 5G communication will be held in Ukraine in 2022, Minister of Digital Transformation Mykhailo Fedorov has said.
“We have already launched research work. Next year we plan to put up frequencies [for 5G communication] at tenders for the operators,” he said during the Kyiv International Economic Forum on Thursday.
According to Fedorov, the active introduction of this communication technology in large cities of the country will begin in two years.
“I believe that at first it will be most relevant for industry, and then large cities, industrial centers will pick up, and gradually 5G will spread throughout the country,” he said.

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UKRAINE TO PUT UP FOR AUCTION BILSHOVYK PLANT WITH STARTING PRICE OF UAH 1.39 BLN

JSC First Kyiv Machine-Building Plant (the former Bilshovyk plant) will be put up for a privatization auction with a starting price of UAH 1.39 billion, which was approved by the Cabinet of Ministers on Wednesday, Dmytro Sennychenko, head of the State Property Fund (SPF) of Ukraine, said. “Today, the Cabinet of Ministers of Ukraine has accepted the terms of its privatization. As they say, now a small [not so] challenge remains to find, together with a representative of Big-4, KPMG Ukraine, investors for this asset,” he said on Facebook on Wednesday evening.
According to Sennychenko, the commission will determine the date of the auction in the near future.
“The experience of previous competitions held by the SPF allows us to confidently predict that we will see a significantly larger number on the final scoreboard,” the SPF head said.
He recalled that the plant was established in 1881, when a Swiss entrepreneur bought about 4.4 hectares of land on Shuliavka in Kyiv, and six months later a new enterprise appeared here – Kyiv iron cast and mechanical plant.
“Over the next more than a hundred years, the plant changed the scale of production, profile, name, and experienced stunning transformations – from an unconditional flagship of the industry to an abandoned technically obsolete site,” Sennychenko wrote, adding that perhaps the enterprise will again interest some Swiss investor.
As reported, in accordance with the privatization conditions approved by the Cabinet of Ministers, the new owner of the enterprise must fulfill a number of social and economic conditions, in particular, the payment of wage arrears and single social security tax, the implementation of the current collective agreement and the prevention of dismissal within a certain period.

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INVENTURE TO SELL MEAT PROCESSING PLANT AT AUCTION

The investment company InVenture (Kyiv), acting in the interests of its client, intends to sell the Bavaria meat processing plant (village Fursy, Kyiv region) at an online auction with a starting price of $1.9 million with its estimated market value of $5 million, the company said on its website on Wednesday.
“The enterprise was built and launched in 2018. At the moment, the plant is mothballed. However, all production equipment is in good condition and is completely ready to resume being functional. Enterprise location: 5 km away from Bila Tserkva and 100 km away from Kyiv,” InVenture said.
According to it, the property complex includes: buildings and structures with a total area of 7,000 square meters, a plot of 14 hectares in private ownership, communications (electricity – 800 kW, gas, water, sewerage system with a working sewage pumping station). The sanitary and ecological standards are followed according to the national legislation.
According to the company, the facility was mothballed in 2019 due to a shortage of working capital and non-core activities of this area for its investor, who had previously planned the construction of a pig farm and a feed mill as part of the enterprise.
“At a distance of 1 km from the property complex of the meat processing plant, there is a site that was planned to be developed as a site for the construction of a pig farm with a pigsty for 1,200 sows and an annual keeping of 32,000 pigs. The project also planned the construction of a feed mill with a capacity of 5 tonnes per day and 4 silos for storing grain, 5 tonnes each,” InVenture said.
The enterprise has modern equipment, its capacity allows to produce smoked, semi-smoked, boiled-smoked and boiled sausages; deli meats, smoked meats, hams and baked meat; sausages and wieners; pates, stewed meat and brawn with a total volume of up to 15 tonnes of meat products per day. The slaughterhouse has a capacity of slaughtering and storing of 320 livestock per day.
The investment company clarified that the acceptance of bids from potential buyers will last until October 15, the announcement of the winners – October 24, and the sale of the asset is planned to be fully completed by December 24, 2021. The estimated market value of the meat processing plant is $5 million, and the starting bidding price for accepting applications is $1.9 million.

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AUCTION FOR SALE OF UKRAINIAN UNITED MINING AND CHEMICAL COMPANY TO BE HELD ON AUG 31

The auction commission for the sale of PrJSC United Mining and Chemical Company with a starting price of UAH 3.7 billion has set a date for the privatization auction, which will take place on August 31, 2021, Head of the State Property Fund (SPF) Dmytro Sennychenko has said.
“Preliminary interest in the object was expressed by a wide circle of investors, part of whom is foreign. We hope for a high competition and a market price of the sale at a transparent auction,” he wrote on Facebook.
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.

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BUSINESS INITIATIVES BUYS KOZLIV DISTILLERY AT AUCTION FOR UAH 59 MLN

Kozliv distillery (Ternopil region) of the state-owned enterprise Ukrspyrt at an online auction on Friday, November 13, was acquired by Business Initiatives LLC (Kyiv) for UAH 59 million.
According to the information on the website ProZorro.Sales, the starting price of the distillery was UAH 37.57 million. The facility was put up for auction for the first time. Two companies took part in the auction.
The daily production capacity of the enterprise is 4,200 decaliters of alcohol. It was founded in 1772, and modernized in 2020. Production at the distillery is temporarily suspended.
According to the unified public register of legal entities and private entrepreneurs, Tetiana Maksymova is the ultimate beneficiary of Business Initiatives LLC. The company is engaged in consulting on informatization issues.

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STATE PROPERTY FUND OF UKRAINE TO ANNOUNCE AUCTION FOR SALE OF DNIPRO HOTEL IN APRIL

The State Property Fund of Ukraine (SPF) will announce an auction for the sale of the Dnipro Hotel located downtown Kyiv in April 2020, Head of the SPF Dmytro Sennychenko said on Facebook on Thursday, March 12. According to Sennychenko, the SPF, together with the new hotel management, are carrying out financial and technical audit at the facility.
“We have intensified preparations for the auction, that will allow us to start the auction in April and find a new owner for the hotel in May,” he reported.
The SPF head said, the net financial result of the Dnipro Hotel amounted to UAH 146,000 in the end of 2019.
As reported, the starting price of the hotel will be $10 million.
Earlier, the SPF appointed Elina Sapozhkova as the new director of the Dnipro Hotel.

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