Politics 2024-02-15T10:52:43+02:00
Ukrainian news
Cabinet Approves Starting Price Of 99.6% Of OPP At UAH 5.16 Billion

Cabinet Approves Starting Price Of 99.6% Of OPP At UAH 5.16 Billion

Ukraine, Cabinet, Cabinet of Ministers, Odesa, OPP, Odessa Port Plant, State Property Fund

The Cabinet of Ministers has approved the starting price of the government stake (99.567%) in Odessa Port Plant (OPP), a large Ukrainian producer of ammonia and carbamide based in Odesa Region, at UAH 5.16 billion or USD 201.07 million at the current National Bank rate.

The Government made this decision at the session on Wednesday, Ukrainian News Agency reports.

According to Chairman of the State Property Fund Ihor Bilous, five companies are showing interest to privatisation of this enterprise.

The Cabinet also approved the privatisation conditions. They contain an obligation for the new owner to clear completely the debts for the natural gas supplied to the plant by Naftogaz of Ukraine national joint-stock company during the continuance of special obligations (October to December 2016).

The Cabinet refused to alter the privatisation conditions of the obligatory endorsement of the auction result by a Government Resolution despite the discussion of this clause during the drafting of the decision.

As Ukrainian News Agency earlier reported, the approval by the Cabinet of the privatisation conditions will enable the Fund to set a date of the OPP sale auction.

The auction is expected to take place in December; nevertheless, the Cabinet extended the deadline date of the OPP equity offering till January 7, 2017.

OPP's total accounts payable are about USD 303 million including USD 251 million of the debt for natural gas to Ostchem Holdings Limited confirmed by the Arbitration Institute of the Stockholm Chamber of Commerce (SCC; Sweden).

July 18, the Fund declared the OPP sale competition a failure for lack of bids.

The Fund was to offer 99.567% (795,083,903 shares) of the enterprise for sale at the starting price of UAH 13,175 million.