Business news from Ukraine

INVESTORS READY TO FINANCE DEVELOPMENT OF UKRAINIAN ENTERPRISES SHOULD BECOME THEIR OWNERS AFTER PRIVATIZATION – EBRD

As a result of the next wave of privatization, investors who are ready to invest in their development of Ukrainian companies should become their new owners, EBRD Managing Director for Eastern Europe and the Caucasus Francis Malige is convinced.
Our task is to organize privatization in such a way that a real investor who will invest money will come, we need to prepare this process, he told Interfax-Ukraine.
On the one hand, it is unacceptable that sometimes this process takes so much time, but on the other hand – I would not want to see that the new owners of the companies have nothing to do with them, investors should be real, Malige noted.
As reported, in early 2018 the working group on privatization was updated. It included representatives of the Reforms Delivery Office under the Cabinet of Ministers of Ukraine, SAGSUR, the World Bank, the EBRD, the International Monetary Fund, the USAID, and the EU Delegation to Ukraine.
The working group was renewed to effectively coordinate the authorities, prepare recommendations and proposals for the draft resolutions of the Cabinet of Ministers on privatization and conditions of the sale of public property, attract international financial and technical assistance to prepare for privatization and put up the objects for sale and analyze the main problems of ensuring transparent and competitive privatization.

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OWNERS OF SIGMA PARK YARYCHIV PLAN TO ENTER EXCHANGES IN FRANKFURT, SINGAPORE AND WANT TO BUILD 10 MORE INDUSTRIAL PARKS

The PR Group (Lviv), implementing a project on construction of the Sigma Park Yarychiv industrial park in Lviv region, plans to build at least 10 industrial parks with a gross area of almost 2,000 ha in two years and enter the Frankfurt Stock Exchange and the Singapore Exchange (SGX). “In addition to the park in Yarychiv, there will be 10 more industrial parks. The largest project for 560 hectares is located on the border of Lviv region in Rivne region. In Yarychiv there will be the smallest one – 15.7 hectares. In general, the entire portfolio of industrial parks is designed for almost 2,000 ha. We are planning to start all projects in two years. We are trying to make a stake on the social component. One of the projects will be located near Chervonohrad, Sokal, where the mines are closed and new jobs need to be created,” Managing Partner and co-owner of PR Group Roman Protsak told reporters on the sidelines of the Industrial Development and Construction Forum in Kyiv.
He said that the development company PR Development, which is part of the group, accompanies development of industrial parks. All the facilities will be united under the Sigma Park joint brand with the prefix of the name of the settlement near which they are located. This year, the company plans to provide two industrial parks for registration at the Ministry of Economic Development and Trade, and in 2019 to launch Sigma Park Yarychiv.
“There are already participants interested in locating their production facilities. Negotiations are currently under way with 48 companies. We will attract them on competitive terms. Each of them will present a development plan for the next 10 years, including offering the best conditions for employees’ salaries, Protsak said.
According to him, in August-September, the company will announce a tender for occupying land parcels in Sigma Park Yarychiv, in which only the food industry will be represented. The implementation of this project (greenfield) is at the utilities design stage. In other parks, the automotive, pharmaceutical, and other industries are located.
“We are currently using our own funds. We are not attracting credit resources, but we plan to enter foreign markets to raise funds through the sale of bonds… There are plans for two platforms – Frankfurt, Singapore and possibly additionally Warsaw. We plan to enter them in 2019-2020. One of our investment funds that deals with real estate in Ukraine and abroad will enter [the exchanges],” the co-owner of PR Group said. He said that the company had previously specialized in the construction of residential real estate, but three years ago, the co-owners decided to switch to commercial and industrial real estate.

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