Cabinet proposes to privatize Ukrtelecom to fight financial crisis

According to Deputy Prime Minister Alexander Turchinov, the Cabinet of Ministers is considering the privatization of Ukrtelecom (UTEL), and using the proceeds as the key financial source for the government’s economic stabilization plan. Turchinov noted that Japanese investors seem to be ready to pay a “fair” price for Ukrtelecom. Alexander Paraschiy: We understand the “fair” price from the point of view of the government to be above the USD 3.5 bln starting price set for the company’s privatization earlier this year. This is a 250% premium to the current market price of UTEL. While we still do not believe privatization of Ukrtelecom is realistic in the near future, news about renewed interest in Ukrtelecom’s privatization is positive for the stock itself.