State Property Fund to sign off on Ukrtelecom sale tomorrow

Ukraine’s State Property Fund is planning to sign an agreement to sell the state’s 92.8% stake in Ukrtelecom (UX: UTLM UK), the incumbent telecom operator, with EPIC tomorrow, Friday, March 11. Yegor Samusenko: Should the signing finally take place, it would allay risks associated with the highly discussed delays in privatization and end the eleven-year saga of Ukrtelecom’s privatization. We stick to our view that the private owner is poised to unlock Ukrtelecom’s growth opportunities and implement a cost cutting program that will allow the company`s margins to converge with its peers within three years. Our 2Y target is UAH 1.10 per share, an upside of 84%.