The Ministry of Economy of Ukraine is actively working on implementing pilot projects that involve the sale of minority share packages of state enterprises. The realization of these share packages will take place through initial public offerings (IPOs) on international exchanges. At the same time, the ministry plans to attract strategic investors and conclude structured M&A deals with the involvement of international advisors.
This is reported by Finway
Preparation for Privatization and Attracting Investors
The ministry notes that despite the complex nature of the assets and a number of legal restrictions, interest from private investors in such state assets is growing. Negotiations are underway with the International Finance Corporation (IFC) regarding the creation of a special responsible advisor fund (retainer fund) that will accompany state deals and assist in preparing assets for privatization.
“This involves the sale of such packages through initial public offerings (IPOs) on international markets. The Ministry of Economy is also preparing to attract strategic investors and structured M&A deals through international advisors.”
Current Privatization Objects: Research Institute and Sanitary Ceramics Factory
The State Property Fund of Ukraine has announced the sale of the “Ukrainian Scientific Research Institute of Special Steels, Alloys and Ferroalloys (UkrNDIspetsstal)” in Zaporizhzhia on December 15. The starting price of the enterprise is 8.7 million UAH. The institute, founded in 1962, specializes in scientific and technical developments in the fields of electrometallurgy, production of special steels, ferroalloys, powder metallurgy, as well as rolling and forging production. An experimental plant with a full metallurgical cycle operates on the basis of the institute, which includes processes of melting, forging, rolling, heat treatment, and powder production.
Additionally, another auction for the privatization of the “Slavutskyi Plant ‘Budfarfor'” is scheduled for December 10. The starting price of this asset is 207.6 million UAH. The plant, established in 1909, is one of the oldest manufacturers of sanitary ceramics in Europe. Currently, the enterprise does not carry out its main activity of producing sanitary ware and rents out its property. This is not the first time the plant has been put up for auction.