Firtash Planning IPO
21 June 2008
Ukrainian gas tycoon Dmitry Firtash is reportedly planning to unite his businesses to create a new holding company, Group DF, which will then be floated on an international stock exchange. Media reports have estimated the value of the assets to be included in the holding at USD 6 bln. Vladimir Nesterenko: Firtash’s 45% stake in RosUkrEnergo is his major asset, worth around USD 4-5 bln. Last year the company, which is the only supplier of gas to Ukraine, ended up with USD 785 mln net income. A year ago almost nobody believed that the RosUkrEnergo’s IPO announcement was for real (the company’s management said they were planning IPO sometime in the upcoming 12-18 months). We did not rule out it completely and hypothesized that it would see low demand, and would target gaining the involvement of foreign shareholders rather than financing (see our report from June 5 2006). Our view remains unchanged. According to public sources, the other Firtash assets in Ukraine include Crimean Titan (titatium dioxide producer, 50% owned by the state), Krymsoda (the country’s largest soda ash producer) and Rivneazot (ammonia fertilizer producer, currently for sale).
