Ukraine selects privatization advisers for first six companies

A nominating commission selected last week M&A advisers
for the privatization of the first six assets that should be sold under the privatization law adopted in January,
the State Property Fund reported on Aug. 3. A company related to Concorde Capital
was selected as an adviser for Kyiv-based President Hotel, pharmaceutical
company Indar and coal mine Krasnolymanska. A company related to BDO was
selected as adviser to sell titanium ore producer United Mining-Chemical
Company, KPGM was selected as adviser for power generator manufacturer
Elektrovazhmash and Pericles Global Advisory was selected for the fertilizer
producer Odesa Portside. The sale of all the mentioned companies should be
completed by the end of 2018.

The fund also announced tenders to select
privatization advisers for another group of companies, including petrochemical
asset Oriana, chemical plant Sumykhimprom, financial company Ukragroleasing,
machinery asset Azovmash and four small heat and power stations.

Recall, the new law on privatization stipulates that
large state assets (controlling stakes in companies with over 0.25 bln in book
value of assets) should be privatized involving financial advisers. In June,
the fund initiated the privatization of 22 large assets under the new law.

Alexander Paraschiy: It’s positive to see the fund is moving forward with its earlier
announced privatization list, which it failed to do for the last four years.
It’s unlikely that all 22 assets will be privatized in 2018, and it’s not
likely that Ukraine’s UAH 22.5 bln privatization proceeds target will be
reached this year. But there is a chance that Ukraine will be able to boost
revenue from sale of state property from the previous year’s result of UAH 3.4
bln.