SPF declares starting price for Mariupol Heavy Machinery
8 October 2008
The State Property Fund of Ukraine announced yesterday that the starting price for the privatization of an 11% stake in Mariupol Heavy Machinery (MZVM: BUY) is UAH 6.77 mln (USD ~1.4 mln), which implies UAH 4 (USD ~0.8) per share. The privatization tender is expected to be held by April 2009. Inna Perepelytsya: The SPF’s starting price is 6.2x less than the current market price. We see the main interested buyer in the stake being major private shareholder UPTK, while other investors will also increase competition and potentially the final price. The previous two attempts by the SPF to sell the 11% stake on the market have failed.
