SPFU sells UMCC to Vodafone Ukraine’s Azerbaijani owner NEQSOL for almost UAH 4 billion

The State Property Fund of Ukraine (SPFU) has sold 100% of the shares of JSC United Mining and Chemical Company to the group of companies NEQSOL Holding, which is the owner of the mobile communications operator Vodafone Ukraine (PJSC VF Ukraine, Kyiv), for UAH 3.938 billion.

The SPFU has said this in a statement, the Ukrainian News agency reports.

"The team of the State Property Fund held a privatization online auction for the sale of a state package of shares in the size of 100% of the authorized capital of JSC United Mining and Chemical Company. The purchase took place in the electronic system ProZorro.Sales. The winning bid is UAH 3,938,351,581. This is the second large privatization lot that the SPFU team has put up for sale," the message says.

According to the approved conditions of sale, the buyer is obliged to preserve the main activities of the enterprise, to invest in technical conversion and modernization at least UAH 400 million. Also, the buyer is obliged to pay debts from wages and to the budget and repay overdue payables.

According to the information in the ProZorro public procurement system, the only participant in the auction for the privatization of the UMCC was Cemin Ukraine LLC, which is related to NEQSOL.

"NEQSOL Holding took this step as a potential strategic investor, which, if recognized as the winner, plans to implement plans for modernization, development of new products using deep processing of raw materials, and expansion on global markets. Currently, NEQSOL Holding is waiting for the completion of the privatization process and the announcement of its official results in accordance with the current procedures," said the regional director of the company, Volodymyr Lavrenchuk.

As the Ukrainian News agency earlier reported, on July 12, the Cabinet of Ministers approved the starting price of UMCC in the amount of UAH 3.899 billion.

UMCC is the largest enterprise in Ukraine for extraction and processing of titanium ore concentrates.

The company includes the Vilnohirsk Mining and Metallurgical Plant (Dnipropetrovsk Region) and the Irshansk Mining and Processing Plant (Zhytomyr Region).

On December 3, 2019, the Bakcell mobile telecommunications operator (Azerbaijan) completed a deal to purchase the Kyiv-based Vodafone Ukraine mobile telecommunications operator (formerly known as MTS Ukraine) from the MTS telecommunications company for USD 734 million.

Bakcell is part of the NEQSOL Holding group of companies, the founder of which is the Azerbaijani Nasib Hasanov.

NEQSOL Holding is an international group of companies whose main areas of activity include energy, telecommunications, and construction.