Government almost halves reserve price for Odessa Portside Plant

Government almost halves reserve price for Odessa Portside Plant

The Cabinet of Ministers of Ukraine set a reserve price for chemical major Odessa Portside Plant at UAH 5.16bn (USD 200mln)

The government of Ukraine decided to lower price of 99,567% equity of the state owned chemical major of Odessa Portside Plant to UAH 5.16bn. At this,

The tendering committee also added additional requirement for the bidders to pay overdue debts of the plant for NJSC Naftogaz of Ukraine. State Property Fund (SPF) proposed to prolong the period of sale of Odessa Portside Plant until 7 January 2017. 

Igor Bilous, the chairman of SPF of Ukraine believes that demand for the chemical major can be considered as middle active. In general, the chemical sector is experiencing not favorable times, as there are concerns about prices for natural gas. At this, the negotiations has activated recently, told the chairman of SPF.

Aleksandr Danyliuk, the minister of finance of Ukraine elaborated that despite a low price of USD 200mln, the investor will have spent on paying debts, finance working capital of the plant in order to launch the plant. The total amount of investments may reach USD 600mln.

The total debts outstanding of the plant stand at USD 300mln. Hence, the price totals USD 500mln.

The chairman of the SPF believes that prices for such assets have to be low in order to attract investors. To remind, in July the price for Odessa Portside Plant was set at UAH 13,175bn, but no willing party revealed an interest to purchase the plant.

Related posts