Kyiv Post: Ukrainian business scene's top acquisitions in 2014 so far
surgery in Dobrobut, a medical service provider thatConcorde Capitaland Oleg
Kalashnykov paid $18 million for, according to the analysts' estimate. Ukraine's medical
care is mostly a state-run sector, but private companies have a 10 percent stake of the
$13 billion market.
hasn't scared off all investors looking for yield-rich capital placement in emerging
market such as Ukraine's.
ongoing crisis, exacerbated by Russia's war, has pushed the value of Ukrainian assets to
critical lows, making them attractive for those who look for opportunities to inject
money and obtain promising corporate stakes in a risky bet on big future
index of an equity trade platform Ukrainian Exchange alone fell by 19 percent since July,
indicating the decrease in value of the local companies.
During a visit
to the U.S. on Sept. 26, Ukrainian Prime Minister Arseniy Yatsenyuk invited American
businesses to dare and invest more actively in Ukrainian assets, while U.S. Commerce
Secretary Penny Pritzker during her visit to Kyiv on Sept. 27 emphasized that agriculture
and energy sectors as of special interest for American investors.
Pennsylvania-based nuclear energy company, expressed interest in purchasing a 40 percent
stake in Energoatom, the state-owned operator of Ukrainian nuclear power stations,
analyst Yuriy Korolchuk told the Kyiv Post. However, Westinghouse will invest only after
it receives a legal right to build new blocks on the local nuclear electricity
Here is the list
of the most notable acquisitions that have already been finalized this year or are
currently on a late stage of the deal.
Austria-registered AMIC Energy Management GmbH bought the Ukrainian branch of Lukoil, a
Russian oil company, which controlled 6 percent of the local gasoline market with 236
stations. Both sides of the deal did not disclose the price, although Oleksandr Sirenko,
an analyst at Upeco consultancy, estimates it at $250 million, while Myroslav Tabaharnyuk
of MT Invest thinks it's $300 million.
Russia's insurance giant Rosgosstrah sold Providna, a major Kyiv-headquartered insurer,
to a Luxembourg-registered private equity fund that manages assets of a pool of Western
European investors. Ukraine remains a substantially underinsured country with insurance
expenditures per capita four times smaller than in the European Union. The whole industry
contributed just 1.6 percent to the nation's $175 billion gross domestic product in
3. Concorde Capital, an investment
company whose key shareholder Igor Mazepa is running for parliament, and owner of the
eyeglass chain Luxoptyka Oleg Kalashnykov, acquired 80 percent of Dobrobut that manages
seven medical treatment outlets in Kyiv and one in Donetsk. Analysts say the price of the
stake at medical service provider doesn't exceed $18 million, while nation's medical
market is estimated at $12-13 billion.
Dmytro Firtash's Group DF paid $94 million for Pravex, a bank, to Italy's Intesa
Sanpaolo, a $500 million discount compared to what Italian banking group paid for the
bank to Kyiv's ex-mayor Leonid Chernovetsky. Analysts foresaw Firtash would merge Pravex
with Nadra, another bank that he owns, but as of now he has not done it amid criminal
prosecutions for bribery claimed by the U.S.
Terra Food, a diary maker with $315 million of revenue and $38 million of earnings before
taxes in 2013, is buying 86 percent of Trostyanets Milk Factory from its previous owner
Milk Alliance. Factory in Sumy Oblast will become group's eleventh production
KVV Group, local metal scrap collector that belongs to the British Gefest Investments
Limited, is purchasing Latvia's insolvent Liepajas Metalurgs, a steel maker, for $136
million. For the deal to be officially recognized by Latvian authorities, KVV Group is
obliged to restore the production in 2014.