Ukraine Selects Ostrov To Value Phone Company Ukrtelecom

KIEV, Ukraine -- Ukraine’s state property fund picked ZAT Consulting Co. Ostrov to value national phone provider VAT Ukrtelecom, which the government wants to sell as soon as next month.

Ostrov, based in Kiev, was chosen from three bidders on Jan. 6, Nina Yavorska, the fund’s spokeswoman, said in a phone interview.

The consulting company has a month in which to carry out the valuation, she said.

Ukraine’s government, which owns almost 93 percent of Ukrtelecom, initially planned to sell the phone company in a Dec. 28 auction with the minimum price set at 10.5 billion hryvnia ($1.3 billion).

The auction was postponed after attracting only one bidder, Austria-based Epic Financial Consulting Gesellschaft’s Ukraine subsidiary.

The price cannot be lower than 10.5 billion hryvnia, Oleksandr Ryabchenko, who heads the property fund, told reporters on Dec. 21.

Ostrov was set up in 1992 and has valued more than 200 companies, including energy distributors such as VAT Luhanskoblenergo, according to its website.

Ostrov offered the best timing and price for valuing Ukrtelecom, Yavorska said.

Ukraine has put off the sale for more than a decade because of disputes between state agencies.

The government wants to raise 10 billion hryvnia from sales of state assets this year, according to the budget.

Source: Bloomberg