Luhanskteplovoz Auction Set For October 3.
19 July 2008
The State Property Fund (SPF) today announced the date for its planned auction of a 76% stake in Luhanskteplovoz (LTPL: HOLD), Ukraine’s only producer of locomotives. The SPF said LTPL would be sold at an open auction similar to last year’s sale of Kryvorizhstal. The starting price is set at $58m. Olha Pankiv: The starting price is 46.2% lower than LTPL’s current market price (the current MCap is $117m). We believe the final price will be at least as high as the current market price. We believe either of the known major bidders – Russia’s Transmashholding and Ukraine’s Finance & Credit group – would boost LTPL’s value by injecting badly needed working capital and bringing in new orders to take advantage of the company’s idle capacity (utilization is currently ~17%).
