Property Fund knows potential Turboatom buyer for UAH 5 bln

The State Property Fund is familiar with a potential bidder for Turboatom (TATM) that is ready to offer USD 600 mln (about UAH 4.9 bln) for the state’s 75% stake, Fund head Oleksandr Ryabchenko told a Dec. 20 press conference. He said the Fund doesn’t have a completed plan to privatize the company in 2013, even though Turboatom will be included in the privatization schedule.

Alexander Paraschiy: The potential bid is 4.3x larger than the current market price of the Fund’s 75% stake in Turboatom, estimated at USD 140 mln. The announced bid is the equivalent to 14.5x of 2012E P/E, which is in line with the market multiples of Siemens, Alstom or GE. The most likely bidder is Russia’s Siloviye Mashiny, which is building up a large post-USSR power machinery holding. In case the government agrees to sell the Turboatom stake, it would have a chance to cover nearly half of its UAH 10.9 bln privatization proceeds plan for 2013 with just one deal.