Economy 2021-10-15T05:07:52+03:00
Ukrainian news
Chinese Investors of "Motor Sich" Officially Informed Fund Market About Cooperation With Yaroslavskyi’s DCH

Chinese Investors of "Motor Sich" Officially Informed Fund Market About Cooperation With Yaroslavskyi’s DCH

Oleksandr Yaroslavskyi, DCH Group, Motor Sich, Skyrizon, Anti-Monopoly Committee of Ukraine
Motor Sich JSC. Photos from open sources
Motor Sich JSC. Photos from open sources

Chinese investors, represented in Ukraine by Skyrizon company, declared official information about cooperation with the Oleksandr Yaroslavskyi's DCH on JSC "Motor Sich" on the website of Shanghai exchange.

The message of the board of directors says that Xinwei and Skyrizon continue the process of merging and reorganization of assets started in 2017.

Would like to remind that this process is connected with the intention to concentrate shares of Ukrainian planemaker JSC "Motor Sich" at Skyrizon company, and, faced obstacles in the form of a prohibitory decision of Anti-Monopoly Committee of Ukraine during the process of realization and distraint of "Motor Sich" shares in a judicial procedure initiated by Security Service of Ukraine.

The previous round of reorganization involved the submission of a joint application by Skyrizon and the State Concern “UkrOboronProm” to the Anti-Monopoly Committee of Ukraine. However, the management of the concern publicly called the deal irrelevant, and the term of the relevant agreements expired at the end of 2019.

"In connection with the changes occurred in the basis of business cooperation between Skyrizon and the State Concern "UkrOboronProm", Skyrizon negotiated cooperation in the field of aircraft engines with the DCH Group (Ukraine) and came to an agreement. On 4 August 2020, Skyrizon withdrew from the Antimonopoly Committee the application that it had previously submitted together with the State Concern "UkrOboronProm"; On 4 August 2020, a subsidiary of Skyrizon and DCH jointly submitted a new application to the Antimonopoly Committee of Ukraine," said in a statement on the Shanghai Stock Exchange website.

The Chinese side also emphasizes in its announcement that "DCH is one of the important industrial and financial groups in Ukraine, uniting metallurgical, mining, engineering, infrastructure, financial and other industries. It owns the Dnipro Metallurgical Plant, a mining company, Kharkiv Tractor Plant, Kharkiv International Airport, INGO Insurance Company, Credit Dnipro Bank and other large enterprises. DCH Group’s mission is to maximize the global competitiveness of the Ukrainian economy. It creates conditions for increasing foreign investment in Ukraine by increasing the company’s efficiency in various industries and implementing large, socially significant economic projects."

The statement says that Skyrizon hopes that cooperation with DCH "will push to the earliest possible approval of the Anti-Monopoly Committee of Ukraine and will facilitate the early completion of a major restructuring of domestic assets."

Earlier, according to a statement from Xinwei, trading in shares of this company on the Shanghai Stock Exchange was temporarily suspended, but in July 2019 they were resumed. Since then, Xinwei has provided monthly updates to the stock market on the progress of the reorganization process, fulfilling its progressive disclosure obligations to protect investors’ rights.

As is commonly known, the DCH group is owned by Aleksandr Yaroslavskyi (Forbes Ukraine Rating Top 10) has a portfolio of assets in the industrial sector and has experience in bringing large industrial enterprises out of the crisis caused by the unlawful court and other regulatory decisions. The DCH’s current investments include Kharkiv International Airport and a project to build a new airport in Dnipro, which motivates the group’s interest in the aviation industry.