Cabinet Lifts Restrictions On Kryvorizhstal's (KRST: BUY) Privatization

As of today KRST?s shares have been transferred from ING Bank (Ukraine) to a bank which will be named by the State Property Fund. According to Tymoshenko, the new tender will be open to all participants. On June 16, the government plans to decide what size stake in the plant will be sold. Tymoshenko expects that price for KRST will exceed USD 2 bn. Concorde Capital: The tender will be carried out as an auction and the price mentioned by Tymoshenko seems realistic. A USD 2 bn price tag would imply the following ratios:  P/S (05E) = 1.2, EV/EBITDA (05E) = 3.8, P/E = 8.4. In contrast, the 2004 privatization implied valuations of: P/S (04) = 0.5, EV/EBITDA (04) = 1.1 P/E = 2.4. Currently, the market average for the Ukrainian steel industry is: P/S (05E) = 0.7, EV/EBITDA (05E) =4.6, P/E = 8.5.