Ukrtelecom auction to be announced today at a starting price of UAH 10.5 bln

Yesterday the Cabinet of Ministers approved the privatization of Ukrtelecom and ordered the State Property Fund to publish an official announcement today. The auction itself should be held on 28 December 2010, and the starting price for the state`s 72.8% stake is set at UAH 10.5 bln (UAH 0.605 per share). Yegor Samusenko: We expect a positive market reaction since today’s official announcement could bring to an end to the 10 year history of privatization talks. Despite the privatization conditions limiting the list of potential bidders and requiring additional post-privatization spending of UAH 1-1.5 bln, we expect the privatization to be successful.