Luganskteplovoz 76% Stake Valued at $57 mln.
6 July 2008
According to media reports the State Property Fund will set a starting price of $57m on the state’s 76% stake of Luganskteplovoz (LTPL: Hold) at a tender expected later this year. The SPF commissioned the estimate from the Centre of Economic Initiatives. Earlier, in a privatization plan submitted to the government, the SPF estimated that the sale of LTPL would bring in $98m. The terms and timing of the tender are to be announced in July-August. In related news, LTPL’s CEO announced ~$10m worth of orders from Ukrzaliznytsya for 2006. Olha Pankiv: We expect the price of the stake to triple in the course of the tender. The starting price implies EV/Sales of 0.9, which is in line with LTPL peers. However the company has room to grow, as 80% of its capacity has not been utilized due to lack of orders. The announced orders came as a surprise; we increase our sales projection for the year to $104m.
