State property worth UAH 1 billion was sold through the ProZorro electronic trading system in the framework of small-scale privatization in Ukraine, according to the ProZorro page on Facebook. According to the report, since the launch of small privatization, 813 successful auctions have been held through the electronic system, which brought the State Property Fund of Ukraine more than UAH 476 million, and municipalities some UAH 562 million.
“The objects of small privatization are in a high demand – an average of 2.7 participants compete for each lot. And the average increase in the starting sale price is 61.24%,” the report says.
“We beat a good figure in small privatization – UAH 1 billion for taxpayers in Ukraine. The practical result of the work of ProZorro.Sale. If after Maidan we did just that, I would have already considered that it was not for nothing that I came to work in government agencies,” First Deputy Economic Development and Trade Minister of Ukraine Maksym Nefyodov said on Facebook.
The State Property Fund of Ukraine (SPF) has announced repeated tenders to select advisors for preparing the following companies for privatization: 99.9988% stake in OJSC Oriana, 99.9952% in PJSC Sumykhimprom and 100% in National Joint Stock Company Ukragroleasing. “To privatize companies for which there no tender was held, and only one bid was submitted, we announced a new tender to select advisors. Next month there will be a repeated tender,” Head of the SPF Vitaliy Trubarov told journalists in Odesa on the sidelines of the Ukrainian Financial Forum organized by the ICU investment group.
According to their terms, bids for participation in the tenders are accepted until the end of the day on October 17. The first stages of the tenders are scheduled for October 23, and the second – for October 26.
“Unfortunately, during the summer period many investment advisers could not be prepared for unbiased reasons,” Trubarov said, expressing hope that the repeated tenders will be success.
He also recalled that for the selection of an adviser for the privatization of Azovmash, the State Property Fund did not receive a single bid, and now, according to the requirements of the new law on privatization, the fund will prepare it for sale without involving an adviser.
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.
The State Property Fund of Ukraine (SPF) has made announcements on holding tenders to select investment advisors to prepare PJSC Azovmash, OJSC Oriana, PJSC Sumykhimprom, NJSC Ukragroleasing, Kherson combined heat and power plant (CHPP), Dniprovska CHPP, PJSC Kryvy Rih CHPP and Severodonetsk CHPP for privatization.
The announcements were published in the Vidomosti Pryvatyzatsii newspaper.
The tenders will be held in two stages. The first stage is to complete on September 7.
The second stage of the tenders to select investment advisors for Azovmash (50% shares), Kherson combined heat and power plant (99.8328% of the share capital), Dniprovska CHPP (99.9277%), Kryvy Rih CHPP and Severodonetsk CHPP will take place on September 17.
The second stage of the tender to select investment advisors for Sumykhimprom (99.9952%), Oriana (99.9988%) and Ukragroleasing (100%) will take place on September 18, 2018.
A number of companies have applied for tenders called by the State Property Fund (SPF) of Ukraine to select advisors for the privatization of insulin producer Indar, President Hotel and Odesa Port-Side Chemical Plant with July 20 set as the deadline for applications, an informed source in the government has told Interfax-Ukraine. “There are applications, and there are many of them,” the source said without giving details.
The SPF’s press service told Interfax-Ukraine that it was not authorized to disclose details at the current stage, advising waiting for the results of the tenders. As was reported, the SPF late in June called tenders to hire advisers to sell 100% of Kyiv-based PJSC United Mining and Chemical Company (UMCC), 70.7016% of PrJSC Indar, 100% of PrJSC President Hotel (all three are based in Kyiv), and two wholly state-owned enterprises: Krasnolymanska Coal Mining Company in the town of Rodynske, Donetsk region, and Kharkiv-based Electrotyazhmash Plant (ETM), as well as 99.5667% of PJSC Odesa Port-Side Chemical Plant (OPZ) in Odesa region.
The deadline for Indar, President Hotel and OPZ is July 20 inclusively. The first stages of the tenders are scheduled for July 26, and the second stages for July 30.
In case of UMCC and ETM, the deadline for applications is July 23, and tenders will be held in two stages: on July 27 and on July 31.
Ukraine on July 12 met with representatives from the ‘big four’ auditors, namely Ernst&Young, Deloitte, PwC, KPMG, as well as Morgan Stanley, Rothschild, ICU, Concorde Capital, Dragon Capital to present details of tenders to select advisers on large-scale privatization,.
The adviser’s tasks include an analysis of the economic, technical and financial performance of an enterprise; bringing the main indicators of its financial statements in line with international accounting standards; carrying out audits (financial, environmental and others), implementation of due diligence and a SWOT analysis of the assets, including assessment of the competitive positions in Ukraine and international markets.