State Property Fund & Transmashholding agree to transfer of Luhanskteplovoz

Ukraine’s State Property Fund and Bryansk Heavy Machinery (part of Russian Transmashholding) signed an acceptance protocol on the transfer of a 76% stake in Luhanskteplovoz (UX: LTPL UK) yesterday, according to an announcement on the SPF’s website. Following the transfer, the SPF will notify the registrar of the change in ownership. The SPF initially sold the stake to Bryansk Heavy Machinery in a March 2007 privatization, which was overturned in September 2009. The SPF reprivatized the block in June 2010, which was again won by Bryansk Heavy Machinery, for USD 51 mln. Last week the Kyiv City Economic Court approved a voluntary settlement between the SPF and Bryansk Heavy Machinery, ending legal battles over the stake’s ownership. Vitaly Gorovoy: We are optimistic yesterday’s agreement will finally settle Luhanskteplovoz’ four-year privatization saga. As we wrote following the court decision last week, we think the return of control to Transmashholding has already been priced in by the market.