Head of the State Property Fund of Ukraine (SPFU) Ihor Bilous says four investors have shown interest in acquiring 99.6% of shares in the country`s major chemical producer, the Odesa Port-Side Chemical Plant (OPP).
”Currently, there are at least four potential bidders in the auction for the OPP sale,” Bilous wrote on Facebook.
As was reported earlier, the July auction of the state`s stake in the OPP, with a starting price of UAH 13.175 billion (some $520 million), was put on hold after no bids had arrived from investors, as it was believed that the asset was overpriced.
Bilous noted that the number of bidders might increase if the starting price of the asset was not very high. At the same time, a big number of investors competing in the auction will help bump up the final price, according to the SPFU head.
”Therefore, I am convinced that with competition being fair, we will have a decent final price,” he added.
Previously, Ukraine`s Cabinet of Ministers supported the changes in the evaluation method that were proposed by the State Property Fund, allowing a reduction in the OPP starting price.
The starting price of the OPP, to be put up for sale at a new auction in late October or early November, may be reduced to $150 million, taking into account of company`s large debt.
UNIAN memo. The OPP, which is located in the town of Yuzhny in Odesa, 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 and exports. The company holds a monopoly in the national market of specialized services for the acceptance, cooling and transshipment of ammonia.