SPF Announces Starting Price For KSTL, Pavlograd Coal Privatizations

On Friday, the State Property Fund (SPF) announced the starting price for the privatization of several companies including Pavlograd Coal and Mittal Steel Kryvy Rig (KSTL: HOLD). The SPF plans to place a 7.82% stake of Pavlograd Coal up for bid on a local stock exchange at a starting price of about USD 21.5 mln. The SPF will place a 0.34% stake in KSTL starting from about USD 2.5 mln on a local exchange.  The tenders are expected to be held on February 21. Pavlograd Coal is one of Ukraine’s largest coal producers. The company consists of 10 mines, and two coal refineries. SCM’s Alchevsk Coke (ALKZ: SELL) controls at 92.11% stake in the company. Nick Piazza: At the beginning of the month, the SPF announced that it would publish the dates for sales of stakes in several companies including Ukrtelecom (UTEL: HOLD), the Odesa Portside Fertilizer Plant, and Mittal Steel Kryvy Rig on February 21 and additionally announce a tender for the sale of a 25% stake in the state insurance company Oranta on March 28. While we are glad to see the SPF pushing forward with some privatizations, we have our fingers crossed that it will make a bigger splash and announce some larger privatizations like UTEL and Odesa Portside.  However, it looks like the President and the government will have to agree on the size of the stake in UTEL to be sold before the SPF can make any serious attempt to privatize the company.