Interpipe May Participate In Nikopol Pivdennotrubny Plant Privatization.

According Oleksandr Kirichko, the Director Interpipe’s pipe and wheel business unit, the corporation is ready to negotiate with the government on the price for the state-owned 96.67% stake in Nikopol Pivdennotrubny when it is put up for sale. Another Ukrainian pipe company, UTIST, has also indicated its readiness to participate in the Nikopol Pivdennotrubny privatization. Concorde Capital: Interpipe controls two plants that were spun-off from Nikopol Pivdennotrubny during its restructuring in 1999- 2004, Nikopol Seamless Pipe, Plant Niko Tube and Nikopol Pipe Company. Minority stakes in these plants (25.01% and 39.98%, respectively) still belong to the Nikopol Pivdennotrubny Plant. UTIST controls Nikopol Stainless Pipe Plant, in which Nikopol Pivdennotrubny Plant has a 39.9% stake. The state has failed to sell its stake in Nikopol Pivdennotrubny Plant several times already, as the company does not control any physical assets now and only has minority stakes in a number of companies created after stripping its shops during the restructuring. Interpipe and UTIST may want to eliminate the political risk they face due to charges of asset stripping at Nikopol Pivdennotrubny Plant. They now have an incentive to peacefully settle the potential conflict with the government by privatizing the state stake in the plant. This move would also be consistent with Interpipe’s recently announced IPO plans and would foster a greater transparency in the corporation.