Prime Minister Yekhanurov Looks To End Nikopol Ferroalloy Conflict.
4 October 2008
The Prime Minister made an official statement inviting all the parties involved in the conflict for negotiations. Concorde Capital: Rumor has it that the government will push Prydniprovia Consortium, who purchased the 50%+1 share stake in the company (NFER: SELL) in 2003 for USD 77 mln, to pay an additional sum, up to USD 200 mln. Although the legal consequences of such a move are not clear and could cause ongoing disputes with Privat group, this appears to be the best solution. In our opinion, USD 277 mln would be an adequate price for the stake and the end of the conflict would alleviate to re-privatization fears and improve Ukraine?s investment attractiveness. If the consideration is indeed USD 200 mln, this will put pressure on the stock price to rise. WATCH
