Ukrainian Government May Resell Ammonium Producer Odeskyi For $630 Million

KIEV, Ukraine -- Ukraine may resell VAT Odeskyi Pryportovyi Zavod, its second-biggest ammonia producer, for 5 billion hryvnia ($630 million), said Oleksandr Ryabchenko, the head of the State Property Fund.

VAT Odeskyi Pryportovyi Zavod

Should the government fail to make a final decision on the sale of Odeskyi or state phone company VAT Ukrtelecom by Aug. 15, it will have to be postponed until next year and the state will probably miss its target for state budget revenue from state-asset sales, Ryabchenko said.

“For the time being, the government has not delivered any decision,” said Ryabchenko today at a press conference in Kiev.

The Cabinet aims to raise 6.35 billion hryvnia this year from selling state-run companies, he said, adding that Parliament approved the reduction from 10 billion hryvnia.

The fund tried to sell Odeskyi Pryportovyi, based in Yuzhnyi, Ukraine, at an auction in September last year.

TOV Nortima, a Ukrainian company, won the bid for 99.57 percent of Odeskyi Pryportovyi, offering 5 billion hryvnia, or $594 million at that time.

Two other companies participated in the bidding. Still, the Cabinet of then-Prime Minister Yulia Tymoshenko cancelled the result, saying it was the result of “a conspiracy.”

Ukraine’s state property fund plans to sell its 50 percent plus one share stake in VAT Dniproenergo, the country’s biggest electricity producer, or VAT Zakhidnenergo, another energy producer, in which the government controls 70 percent, in the fourth quarter of this year, said Ryabchenko.

Ryabchenko also said the fund has submitted a five-year program to the government. Under the program, Ukraine may receive between 50 billion hryvnia to 70 billion hryvnia in proceeds from state-asset sales through 2014, Ryabchenko said.

The government has to approve the program, which later should be approved by Parliament, he added.

Source: Bloomberg