Business news from Ukraine

ANTIMONOPOLY COMMITTEE OF UKRAINE PERMITS AZERBAIJAN’S BAKCELL OPERATOR TO BUY VODAFONE UKRAINE

The Antimonopoly Committee of Ukraine has permitted Azerbaijan’s Bakcell telecom operator to acquire shares in Preludium B.V. (the Netherlands) through which MTS Group owns the second largest mobile communications operator in Ukraine – PrJSC VF Ukraine (Vodafone Ukraine).
“Today, the Antimonopoly Committee of Ukraine granted permission to Bakcell LLC for the indirect purchase of shares of Preludium B.V., which grants over 50% of the votes in the management body of the company. This will allow the company from Azerbaijan to get indirect control over the Ukrainian mobile communications operator, known under the Vodafone brand,” the committee said in the Facebook social network.
Bakcell, founded in 1994, is the mobile communications operator and a leading provider of mobile Internet in Azerbaijan. It operates in GSM, UMTS and LTE standards.
Bakcell network consists of more than 7,500 towers, covers 93% of the territory (excluding occupied territories) and 99% of the population of Azerbaijan. The company has more than 3 million subscribers.
According to the results of 2018, Vodafone Ukraine reduced its net profit by 18.1% compared to 2017, to UAH 1.8 billion. The company explained this figure as an increase in costs due to the active deployment of 4G and 3G networks.
Vodafone Ukraine is fully owned by Preludium B.V. It is part of the international MTS Group, which shares are listed on the New York Stock Exchange.

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UKRAINE INTERNATIONAL AIRLINES READY TO BUY UKRAINIAN MASS-PRODUCED AIRCRAF

Ukraine International Airlines (UIA) is ready to purchase medium-haul aircraft of Ukrainian production, provided they are launched into mass production, chairman of the supervisory board and co-owner of UIA Aron Mayberg has said in an interview with Mind.ua.
“UIA is the only airline in Ukraine that is actively and consistently developing domestic flights. It’s another matter that with the abolition of VAT, the company will be able to more actively increase the fleet for domestic flights. The preliminary plans for next year include replenishment of the fleet with at least two Embraer 195s, and if all will turn out favorably this figure may increase to four,” he said.
According to Mayberg, UIA is interested in buying medium-haul aircraft, the cost of transportation in which in terms of one seat will be $30-40. This will make it possible to sell tickets from $20-22 to $70-80 on a flight.
At the same time, he emphasized that mass production is a prerequisite for the purchase of Ukrainian aircraft by airlines.
“It’s not only a matter of cost. Aircraft need to be mass-produced, and not be made in three individual planes, for which it is not clear where to get pilots, spare parts and how to service them. Serial production is not developed in one day. This is a long and complex process. We really need a medium-haul aircraft with a capacity of 70-100 seats. If Ukraine makes such a successful aircraft, we would buy it,” Mayberg said.

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FOREIGN COMPANIES OPERATING IN UKRAINE FOR OVER THREE YEARS TO BE ABLE TO BUY FARMLAND – EXPERT

Agricultural companies operating on the Ukrainian market for over three years would be able to buy farmland which they lease as of the date of the opening of the market, October 1, 2029, Head of the Verkhovna Rada committee for agricultural policy and land relations Mykola Solsky (the Servant of the People parliamentary faction) has said.
“There are more than 1,300 enterprises that have been operating in Ukraine for years, investing in Ukrainian land, infrastructure, creating jobs, and belong, including to foreigners. For this category of legal entities, only those that have been engaged in agricultural business for at least three years in Ukraine, and only for the amount of land that they cultivate at the time the law comes into force, which they have in the contracts,” he said at a briefing in the Verkhovna Rada on Friday.
In the near future, the land committee intends to consider 11 land bills that are registered in the Rada, Solsky said.
According to him, the Ministry of Economic Development, Trade and Agriculture is currently considering the introduction of a limit on government support in the framework of budget support for 2020, estimated at UAH 4.4 billion, at the level of UAH 5 million per person or a group of affiliated persons.
Deputy Minister of Economy, Trade and Agriculture Taras Vysotsky, in turn, noted the need to include all the information about state-owned land in the register of the State Service for Geodesy, Cartography and Cadastre by August 1, 2020.
“By the end of the year, we will enter information on 1 million hectares of state-owned land, and before August we will have to add another 0.5 million hectares. We are in line with the schedule,” Vysotsky said.
He said that it is planned to hold 18 regional forums devoted to the land market.

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DRAGON CAPITAL TO BUY TWO SHOPPING MALLS IN UKRAINE

Cypriot Dragon Capital Investments Limited is going to acquire shares of Arricano Real Estate Plc developer’s Cypriot subsidies: Museo Holdings Limited and Sunloop Co limited, which would grant over 50% of the votes in the management body of the companies. According to an agenda of the Antimonopoly Committee of Ukraine (AMCU), the regulator will consider the issue of granting permission for the transaction at a meeting on September 12.

As reported, Arricano Real Estate Plc (Cyprus), managing company and developer of shopping and entertainment malls in Ukraine, is going to sell two its properties: Sun Gallery Mall in Kryvyi Rih (Dnipropetrovsk region) and City Mall in Zaporizhia.

According to the developer, Sun Gallery is currently held in Arricano’s subsidiary, PrJSC Ukrpangroup, a Ukrainian subsidiary of Museo Holdings Limited and City Mall is currently held in in Arricano’s subsidiary, Pryzma Alfa LLC, aUkrainian subsidiary of Sunloop Co Limited.

Arricano is one of the leading real estate developers of shopping centers in Ukraine with European investments. It is listed on the AIM Market of the London Stock Exchange since 2013. Today Arricano Group owns and operates five completed shopping centers and 49,9% shareholding in Sky Mall and land for further three sites currently under development.

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BUSINESSMEN ASTION PLANS TO BUY BABY FOOD PLANT IN UKRAINE

Ukroagro Alliance (Nicosia, Cyprus) belonged to Vasyl and Yevhen Astion plans to acquire Khorol baby food plant LLC (Poltava region) and Khorol baby food plant Trade House LLC (Kyiv).
The Antimonopoly Committee of Ukraine could permit Ukroagro Alliance to buy a stake in the charter capital of the two companies exceeding 50% of the votes in the management bodies of the companies.
According to the unified public register of legal entities and individual entrepreneurs, Vasyl and Yevhen Astion are also founders of Dnipro Agro Group, which core business is the production, storage and sale of grains and oilseeds.
The enterprises of Dnipro Agro Group cultivate more than 50,000 hectares of land in Dnipropetrovsk region, grow wheat, barley, sunflower, and rape. The group owns three silos with a total storage capacity of about 125,000 tonnes.
Khorol baby food plant produces cereals, dairy products, water under the Maliutka, Malysh and other trademarks. The plant produces more than 20 kinds of products.
Qibox Financial Ltd. (Nicosia, Cyprus), owned by Serhiy Kobzar, is listed as the ultimate beneficiary of Khorol baby food plant and the trade house.

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ANTIMONOPOLY COMMITTEE OF UKRAINE PERMITS CERAMIC TECHNOLOGIES TO BUY BRICK PLANT FROM CZECH BANK

The Antimonopoly Committee of Ukraine has permitted Ukrainian Ceramic Technologies LLC (Khmelnytsky) to buy a brick plat from Czech Export Bank (CEB, Prague). As the press service of the regulator reported on Thursday, the company received permission to buy a complex of buildings of the brick factory with equipment and a land parcel, which provides for the production and sale of ceramic bricks of various types.
As reported, early October 2018, a brick factory in the village of Kuzmyntsi (Kaharlyk district, Kyiv region), put up for sale by the Czech Export Bank, was sold for UAH 170 million – a record amount at the OpenMarket electronic trading platform of the state-owned enterprise SETAM. According to the documentation provided in the announcement, the lot included a complex of buildings of the brick factory with a total area of 15,900 square meters, land area of 3 hectares, and equipment.
Kuzmyntsi brick factory, which began operating in 2002, was declared bankrupt in April 2016.

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