Privatization watchdog seeks to ensure efficient sale of Odesa chemical plant

Wednesday, July 13, 2016 - 14:32 (EEST) Section: Latest news

Head of Ukraine`s State Property Fund (SPF) Ihor Bilous has voiced doubts about the ability to conduct a successful competition for the privatization of a 99.6% stake in Odesa Portside Chemical Plant (OPP), which has been scheduled for July 26.
Also, Bilous has not ruled out the possibility that the SPF may again call for bids, Bilous wrote on his Facebook page.
”If there are few bids [fewer than two, one of which should be submitted by a foreign bidder] or an ad hoc commission does not allow the interested parties to participate [in the contest], after studying the package of documents submitted, a second contest may be held in autumn, in the context of the present circumstances,” Bilous wrote.
Bilous also noted the SPF would apply a prudent approach towards the OPP privatization and place great emphasis on the transparency of the process. According to the SPF head, investors will need to receive state guarantees on gas transportation and land lease issues to ensure the trouble-free sale of the Odesa-based plant.
Further, Bilous noted that potential buyers are seeking a reduction in the starting price of the OPP shares, as well as the provision of post-deal tax benefits.
As UNIAN reported in mid-May 2016, the Ukrainian government approved terms of privatization of a 99.6% stake in one of Ukraine`s largest chemical producers, Odesa Portside Chemical Plant, with a starting offer of UAH 13.175 billion. The contest was scheduled for July 26, 2016. Major potential buyers of Odesa Portside Chemical Plant are Norway`s Yara, U.S.-based IBE Trade, Koch Fertilizers, CF Industries, and Polish company Ciech, according to Bilous.
UNIAN memo. Odesa Port-Side Plant, which is located in the town of Yuzhny in Odesa region, is Ukraine`s second largest ammonia and carbamide producer, and the third largest manufacturer of nitrogen fertilizers. The company also handles shipments of chemical products arriving from CIS countries, as well as exports. The company holds a monopoly in the national market of specialized services for acceptance, cooling and transshipment of ammonia.