AMCU returns DCH request to acquire control of Motor Sich

Antimonopoly Committee of Ukraine (AMCU) has returned
unanswered DCH Group’s application to allow the purchase of a control stake in
aviation firm Motor Sich (MSICH UK), DCH reported on Aug. 31. The Committee
requested additional information from DCH on its assets in some non-core
markets where Motor Sich is allegedly present, including medical services,
financial services and agricultural machinery. DCH highlighted that the return
of the application allows it to apply to the Committee again.

Recall, DCH Group reported in early August that it had
entered into an agreement with the Chinese firm Skyrizon on a joint investment
in Motor Sich. Skyrizon, which reportedly acquired a control stake in Motor
Sich in 2016, has been unsuccessfully struggling to get AMCU permission to
assume control over the company since 2017. Skyrizon’s attempt to get
individual permission in 2017-2018 failed, and so was its attempt to cooperate
on this with Ukraine’s state holding, Ukroboronprom, in 2019-2020. Skyrizon’s
deal, among others, is heavily opposed by U.S. top officials: in the latest
display of such opposition, U.S. State Secretary Mike Pompeo, in his Aug. 26
talk with president Zelensky, called the deal a “malign investment”
on the part of China.

Alexander Paraschiy: The AMCU has been trying to avoid any decision on the Skyrizon / Motor
Sich deal for about three years, and its latest move indicates it is trying to
continue postponing the solution for as long as possible. As we stated before,
such uncertainty might be harmful for Motor Sich’s future as a going concern.