Up To 50% Of Ukrtelecom To Be Placed On Stock Exchange?

The Minister of Transport and Communications Viktok Bondar announced the ministry’s plan to sell 50% of Ukrtelecom (UTEL: BUY) to a strategic investor and place the remaining stake on the stock exchange. According to the plan one third of this stake is to be placed on the local stock market, the rest on an international stock exchange. Concorde Capital: We doubt Bondar’s scenario will be realized as stated: it would be more beneficial for the state to sell large block to one holder. Still, the placement of a 10%-15% stake on an international exchange coupled with a 50%-75% sale to a strategic investor would be a wise privatization strategy and we consider it quite possible.