Calls For Semenuik's Head As LTPL Privatization Details Emerge

Following the State Property Fund’s (SPF) sale of Luhanskteplovoz (LTPL: HOLD) last Friday to Russia’s Braynsk Heavy Machinery Plant, for only USD 100 ths more than the tender’s starting price of USD 59.8 mln, Alexander Bondar, the Vice Head of the Rada’s special Commission on Privatization, called it an unprecedented event in the history of Ukrainian privatizations. Bondar added that he had no idea how the SPF could call the tender “open” if not all of the potential bidders were not informed about the auction’s date. Representatives from Marganets Iron Ore, one of the companies’s present at the auction but banned from participating said that they plan to challenge the privatization in court. As we reported earlier, Luhanskteplovoz (LTPL: HOLD) was sold to Braynsk Heavy Machinery, part of Russia’s Transmashholding on Friday for USD 59.9 mln following a late-night ruling overturning the ban on the company’s privatization. Only four companies were present at the privatization: Bryansk Heavy Machinery, Demikhovski Machine Building (also part of Transmashholding), Dniprovagonmash and Privat Groups’s Marganets Iron Ore. Of those only the companies connected to Transmashholding were allowed to participate. Nick Piazza:  The uproar the SPF’s move caused in both political and business circles leads us to believe this is not the end of the road for the LTPL privatization story, stay tuned.