Business news from Ukraine

COMPETITION AGENCY PERMITS AGIMANT TO BUY 100% OF SHARES IN OWNER OF DNEPROMETIZ

The Antimonopoly Committee of Ukraine permitted Cypriot Agimant Limited of the Ukrainian businessman Sergiy Tigipko to acquire 100% of Dealzone Holding Ltd. (Rod Town, British Virgin Islands), which owns 98.6578% of shares of one of the largest enterprises for the production of metal products in Ukraine PrJSC Dneprometiz.
“On October 8, the committee granted Agimant Limited permission to acquire sole control over Dealzone Holding Ltd. by concluding a shareholder agreement between Agimant Limited and Sartorius Limited,” the committee said in a statement.
According to the report, Sartorius Limited controlled Dealzone Holding Ltd. thanks to the availability of a veto.
The committee also said that Sartorius Limited, which intends to transfer control, is not bound by control relations with Tigipko’s TAS Group or any business entities-residents of the Russian Federation, which are subject to special economic and other restrictive measures (sanctions).
According to the public register, Oleh Artemiev from Dnipro is the beneficiary of Sartorius Limited. Through this company, he controls Granit Invest-Rokytne LLC and Rokytne Granit Quarry in Kyiv region with revenue UAH 7 million and UAH 3.1 million in 2019 respectively.
Sartorius Limited for some period this year was also the owner of Rubezh Invest LLC after the company whose beneficiary was Tigipko, but now Yevhenia Kurnosenko from Dnipro is the beneficiary of this limited liability company through Technoprom SKD LLC.
In the public register, Tigipko is listed as the beneficiary of Dneprometiz; earlier, Alexey Mordashov, co-owner of Severstal (Russia), acted as the beneficiary.
According to the information disclosure system of the National Securities and Stock Market Commission for the second quarter of 2020, Dealzone Holding Ltd. held 98.6578% of the shares of Dneprometiz.
As reported, the Antimonopoly Committee on April 25, 2019 considered the issue of the purchase of the Dneprometiz enterprise by the TAS group from the sanctioned Severstal and admitted violations of the legislation on the protection of economic competition in the transaction, imposing a fine of UAH 55 million on the TAS group.
The Kyiv business court overturned the decision of the Antimonopoly Committee to impose the fine and refuse to grant this acquisition.

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STATE-OWNED PRIVATBANK WANTS TO SELL SHARES IN LARGEST SKI RESORT IN UKRAINE

State-owned PrivatBank intends to involve an adviser in the preparation and sale of the financial institution’s shares in Bukovel, the largest ski resort in Ukraine, Deputy Head of PrivatBank Halyna Pakhachuk has said. “The bank owns two-thirds of the complex, which consists of 64 facilities, one-third is Skorzonera LLC,” she said.
Pakhachuk reported that this list of objects is not an integral property complex; in addition to the hotel, it includes 104 hectares of land and part of the lifts.
According to the deputy head of PrivatBank, when these objects were initially put on the bank’s balance sheet, their value was estimated at UAH 12.6 billion, including the Radisson Blu Bukovel hotel (Zirka Bukovelia) at UAH 1.62 billion, but their real market value differs from these indicators.
Pakhachuk also said that in recent years the bank has been renting its facilities in Bukovel to the Parktur LLC resort operator (Polianytsia, Yaremche, Ivano-Frankivsk region). In 2019, the rent amounted to UAH 110.5 million, including UAH 47.5 million per hotel, and in 2020 it will increase to UAH 117.5 million, including UAH 50.5 million per hotel.
The deputy head of the bank reminded that these facilities are non-core for the financial institution, and according to the standards introduced by the National Bank in the future, they will have to be taken into account at zero cost.
Radisson Blu Bukovel hotel increased its net income by 9.1%, to UAH 221 million, and the net loss decreased by 36.7%, to UAH 39.33 million in 2018. According to the state register, the beneficiaries of this enterprise are former owners of PrivatBank Ihor Kolomoisky and Hennadiy Boholiubov.
The revenue of Parktur LLC increased by 71.9%, to UAH 425.35 million, net profit increased by 6.2 times, to UAH 86.14 million in 2018, the owner is Vitaliy Kovalchuk, registered in Kolomyia (Ivano-Frankivsk region).

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QUARTER PARTNERS BUYS PART OF SHARES IN DOC.UA SERVICE

Quarter Partners, a private investment fund, has bought shares in the DOC.UA online medical service, the fund said in a press release. The amount of the transaction is not disclosed.
According to Quarter Partners, in 2020 it is planned to launch the DOC.UA service in Uzbekistan, Kazakhstan, and Moldova. The markets of Georgia, Azerbaijan, the Baltic countries and the UAE are also under development.
The head of the supervisory board of EFI GROUP (a group of companies that is the majority owner of the service), Ihor Liski noted that attracting such investments will bring the service to a new level.
“We continue to improve our innovative practices, strengthen the team and its effectiveness. Therefore, Quarter Partners is a reliable partner for us, able to support bringing the project to a new level,” he said.
EFI GROUP (Effective Investments) operates in various sectors of the economy: pulp industry, gas industry, energy, agriculture, woodworking, creative industry, and healthcare.
The DOC.UA service monthly serves more than 700,000 requests. A base of more than 10,000 doctors and 1,700 medical institutions in Ukraine is available to DOC.UA customers.
Quarter Partners fund invests in businesses with a high growth potential for their development and subsequent sale to strategic investors. The founder of the fund is Ukrainian investor Andriy Ivanov. Quarter Partners completed deals on equity raising and selling to strategic investors totaling over $5 billion.

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CANADIAN COMPANY INTENDS TO ACQUIRE SHARES IN UKRAINIAN INSURER

Canada’s FFHL Group has announced its intent to acquire 29.08% of shares in PrJSC Universalna Insurance Company (Kyiv).
According to the National Commission for Securities and the Stock Market, earlier FFHL Group and affiliated persons did not hold shares of Universalna.
Earlier, the Antimonopoly Committee of Ukraine permitted Fairfax Financial Holdings Limited to purchase (through a subsidiary of FFHL Group Ltd.) shares of PrJSC Universalna Insurance Company, which will grant over 25% of the votes in the governing body of the insurance company.
The Antimonopoly Committee of Ukraine also allowed Fairfax Financial Holdings Limited to acquire shares of Universalna insurer through the newly created FFH Ukraine Holdings LLC, which will grant over 50% of the votes in the governing body of the insurer.
Universalna was founded in 1991, It provides services in the field of risk insurance. It offers services for 42 types of insurance. The company’s regional network has more than 300 points of sale throughout Ukraine.

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KERNEL COULD CONSIDER SALE OF SHARES IN GRAIN TERMINAL IN RUSSIA’S TAMAN PORT

Kernel, one of the largest Ukrainian agricultural groups, could consider a possibility of selling shares in a deep-water grain terminal at the Taman port (Russia) if the price offered for them were acceptable, the agricultural holding has said on the Warsaw Stock Exchange (WSE).
Several potential buyers are interested, and if the holding receives the satisfactory price, it will seriously consider the issue of leaving the Russian market, Kernel President Andriy Verevsky said.
As reported, in 2012, Kernel and Glencore acquired a 100% stake in the deep-water grain terminal in the port of Taman from the EFKO group. The transaction value was $265 million. Kernel received a 50% stake in this terminal. In 2018, Kernel transferred its quota for transshipment of 1.8 million tonnes of grain to a third party and received $7.8 million for this.
Kernel is the world’s largest producer and exporter of sunflower oil, a leading manufacturer and supplier of agricultural products from the Black Sea region to the world markets.

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BALTIC BEVERAGES INVEST WILL BUY 12.6 MLN SHARES OF CARLSBERG UKRAINE

Baltic Beverages Invest AB (BBI, Sweden) will buy 12.583 million shares of PrJSC Carlsberg Ukraine (Zaporizhia), one of the largest brewing companies of Ukraine, within the framework of squeeze-out for UAH 14.7 per share.
According to the report in the information disclosure system of the National Securities and Stock Market Commission, this price is defined as the market value of shares as of March 25, 2019. Thus, the total amount of the repurchase of 12.6 million shares of Carlsberg (1.2% of the total number of shares) will be about UAH 185 million.
As reported, Baltic Beverages Invest AB at the end of March 2019 announced its intention to exercise the right to compulsory redemption of shares from the minority shareholders of PrJSC Carlsberg Ukraine.
Carlsberg Ukraine in 2018 increased its net profit by 1.5 times compared with 2017, to UAH 1.634 billion.
Carlsberg Ukraine is part of Carlsberg Group, one of the leading brewing groups in the world, whose products are sold in more than 150 countries.
Carlsberg Group in Ukraine includes three breweries in Zaporizhia, Kyiv, and Lviv.

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