The State Property Fund (SPF) of Ukraine has put up for auction Zarubinsky distillery (Ternopil region), which is the most expensive lot in the history of small-scale privatization – the starting price is UAH 245.4 million, the Fund reported on Facebook.
“This is an operating enterprise in the alcohol industry that produces not only ethyl alcohol but also bioethanol and even exports it,” the SPF explained.
According to the report, the distillery includes 58 real estate objects with a total area of 28,804 thousand square meters, including workshops, warehouses, industrial buildings, an administrative complex and other facilities. The privatization lot also includes 27 vehicles and special equipment.
According to the SPF, in 2022-2023, the company was profitable – UAH 1.1 million and UAH 1.6 million, respectively. In 2020-2021, it showed significant losses – UAH 72.7 million and UAH 14.2 million, respectively. As a result, Zarubinsky Distillery has accumulated significant accounts payable – UAH 374 million, of which UAH 4.4 million are debts to the budget and UAH 732 thousand to employees. These liabilities will be transferred to the future investor.
The auction is scheduled for October 2.
According to the Fund, distilleries are among the most popular small-scale privatization assets. Since September 2022, the SPF has sold 14 distilleries and raised UAH 965 million to the state budget, with the average price of each property at auction tripling.
The State Property Fund (SPF) has put up for sale the Zarubinsky distillery in Ternopil region. The starting price is UAH 245.4 million, the press service of the fund reported.
“The company’s main products are ethyl alcohol and denatured alcohol, including bioethanol,” the SPF said.
According to the report, the facility has 58 units of real estate with a total area of 28.8 thousand square meters, which are located on four land plots with a total area of 23.5 hectares. The company’s vehicle fleet includes 27 units. The plant employs 129 people.
The volume of sales of products (works, services) (including exports) for the period 2020 – the first half of 2023 amounted to UAH 909.5 thousand, including exports – UAH 835.5 thousand.
As of June 30, 2023, accounts payable amounted to UAH 374,681 thousand, of which UAH 210,144 thousand is overdue. Staff salary arrears amounted to UAH 732 thousand.
The auction is scheduled to take place in September. The exact date will be announced later.
The State Property Fund (SPF) of Ukraine has scheduled a second auction for the sale of Belgorod-Dnistrovsky Commercial Sea Port (BSP) for August 15 with a starting price of UAH 92.45 million.
According to the FGI website, the auction previously scheduled for June 14, before which the starting price of the object was halved to 92.46 million (excluding VAT), was not held due to the lack of bidders.
The winner of the previous auction for the sale of Belgorod-Dnestrovskyi ICC, which took place on March 13, Ukrdoninvest LLC of businessman Vitaliy Kropachev refused to buy the port at the stage of agreeing the terms of the sale and purchase agreement with the regional department of the Federal State Property Management Agency for Odessa and Mykolayiv regions. The company specified that the sale price of the port at the auction, which it won was UAH 264.12 mln (including VAT). It was also reported that Ukrdoninvest did not demand the return of the guarantee fee in the amount of UAH 18.76 million.
The FGI reported that it will re-run the privatization auction for the sale of “Belgorod-Dnistrovskyi ICC” in connection with the recognition of the auction at which it was sold to “Ukrdoninvest” failed: the winner of the auction did not contribute funds for the object, the press service of the Fund reported.
The first auction for the sale of the port with a starting price of UAH 187.57 million, scheduled for March 3, was not held.
Earlier, the FGI noted that the port of Belgorod-Dnistrovsky founded in 1971 is unprofitable, but since 2022 the enterprise “plays an important role in ensuring world food security as a logistics center for ports on the Danube”. In the first quarter of 2023, the port’s total revenue amounted to UAH 7.391 million. At the same time, the loss for this period amounted to – UAH 4.45 million. The amount of overdue accounts payable as of March 31, 2023 – UAH 118.7 million, including wage arrears – UAH 11.5 million. The total debt on wages and payments to the budget amounts to UAH 96.37 mln, including penalty of UAH 1.7 mln.
In 2022, Belgorod-Dnistrovsky ICC received 63 thousand UAH of profit against losses of 28.5 million UAH in 2021 and 25.2 million UAH in 2020.
The port provides loading and unloading services for the main cargo nomenclature: timber cargo, mineral fertilizers, iron ore pellets, metal products. It works with timber and grain cargoes destined for export.
A new privatization auction for the sale of the Bilhorod-Dnistrovskyi Commercial Sea Port (NCSP, Odesa region) is scheduled for March 13. The starting price of the property has been halved from UAH 187.57 million to UAH 93.78 million, according to the property’s page on the State Property Fund’s website. According to the published information, the acceptance of bids from buyers will end at 20:00 on March 12, and the next day at 12:30 an English auction will be held with a minimum bid step of UAH 937,871.2.
As reported, the first auction for the sale of the port with a starting price of UAH 187.57 million scheduled for March 3 did not take place, the probable reason for the failure of the auction is the absence of at least two bids.
Earlier, the Fund noted that the port is unprofitable, but since 2022, the company “plays an important role in ensuring global food security as a logistics center for ports on the Danube.” According to the head of the SPF, Rustem Umerov, the port has great potential for the development of Ukrainian exports and needs investment in development.
According to the SPF, in 2019-2021, the net loss of the Bilhorod-Dnistrovskyi ICC amounted to approximately UAH 23.5-28.5 million, and in January-September 2022 – UAH 2.9 million. The volume of sales of products (works, services) for the period of 2019-nine months of 2022 amounted to UAH 80.8 million, including UAH 9.2 million for export.
The total overdue accounts payable amounted to UAH 104.6 million, including UAH 13.66 million in salary arrears. As of December 1, 2022, the debt to the State Tax Service amounted to UAH 59.6 million, including UAH 57.9 million in tax debt and UAH 1.7 million in penalties.
The terms of the port sale stipulate that the port must pay off its wage and budget arrears within six months in the amount that will be available as of the date of transfer of ownership of the privatization object. In addition, during the same period (six months), the employees of the privatized enterprise may not be dismissed at the initiative of the buyer or its authorized bodies, except in cases where the employee commits actions provided for in paragraphs 3, 4, 7, 8 of Part 1 of Articles 40 and 41 of the Labor Code.
Since April 1, 2022, Bilhorod-Dnistrovskyi seaport has been used as a logistics center for ports on the Danube. It receives cargo by truck and then ships it in railcars. In May of the same year, the company started shipping grain, transshipping iron ore pellets and transshipping metal products. In the six months after the reopening, cargo transshipment at the MTP increased 100 times compared to 2021. The port received more than 10 thousand trucks and shipped 4 thousand railcars by rail, which significantly eased the load on the country’s road infrastructure to the ports of Izmail and Reni (Odesa region). All products were exported.
Founded in 1971, Belgorod-Dniester Commercial Sea Port specializes in transshipment of timber, mineral fertilizers, iron ore pellets, metal products, and grain cargo. According to its charter, its core business is auxiliary water transport services.
The port’s balance sheet includes nine vessels of the port fleet, 47 units of road and 4 units of rail transport, 18 portal cranes and special equipment: 41 forklifts, four excavators, three bulldozers, a pneumatic crane, and a compressor. A part of the port’s property (28 items, including real estate and vehicles) is leased with the expiration date of the existing lease agreements being 6.09.2027. The port has six registered land plots with a total area of 65.63 thousand hectares.
According to the decision of the Odesa Customs Service, a temporary customs control zone has been established on the territory of the port facilities.
Vessels enter the port through the 1.5 km long approach channel of the offshore part of the Dniester-Tsaregorod estuary and the 14.5 km long Dniester-Liman part. The depth of the approach channel is 3 m (passport depth is 3.4-4.5 m). The single property complex is located on the territory of 64.4 hectares at the following addresses: 81 Shabska Street, Bilhorod-Dnistrovskyi, Bilhorod-Dnistrovskyi district, Zatoka village, 93 Zolotyi Bereg Street, Bilhorod-Dnistrovskyi district, Zatoka village, 1 Primorskaya Street.
Earlier, the SPF sold the integral property complex of the Ust-Dunay port for UAH 200 million on the Prozorro electronic platform. During the auction, its price tripled.
The State Property Fund of Ukraine (SPF) wants to be transformed into the Sovereign Fund, a state asset management fund, Rustem Umerov, who has been appointed its head this week, said.
“We will perform the functions of selling through privatization, through leasing. But we are also considering expanding the mandate in order to create the State Asset Management Agency, so that we can see that strategic assets will be in the fund, will be managed by it,” he said.
According to Umerov, privatization will continue and the fund would like to become “a good contributor of the government in terms of income.”
The State Property Fund (SPF) has issued an order on the privatization of the power generating company PJSC Centrenergo.
“By order of the State Property Fund No. 1275 dated July 23, 2021, the decision was made on the privatization of a state-owned enterprise – a state-owned stake of shares in the amount of 78.289% of the charter capital of the public joint-stock company Centrenergo. These are 289,205,117 shares,” the SPF said in a statement on its website on Monday.
According to the order that approved the plan for the placement of shares, the stake of the power generating company is planned to be placed at an auction with conditions from August 2 to December 31, 2021.
The SPF’s large privatization department shall ensure the creation of an auction commission and a competitive selection of an advisor to prepare for privatization and the sale of the stake.
