Tender to sell Odesa chemical plant to be held again in fall at lower starting price

Tuesday, July 19, 2016 - 17:20 (EEST) Section: Latest news

The State Property Fund of Ukraine (SPFU) intends to lower the starting price of 99.6% shares of the Odesa Port-Side Chemical Plant and call for another tender to sell the plant in early fall, SPF Head Ihor Bilous said at a press briefing.
Odesa Port-Side Chemical Plant is one of the country`s largest chemical producers.
”To attract a broader range of investors, it is necessary to change the privatization terms, including the price … We will also consider a discount of 30%,” Bilous stated.
He added that the plant will be put up for sale again in late summer or early autumn.
As UNIAN reported earlier, on July 18, SPFU announced that a tender to sell 99.6% shares of the Odesa Port-Side Chemical Plant had failed due to a lack of interest.
The regulator claims the reasons for the lack of investors` interest in the tender, which was scheduled for July 26, include the debt incurred by the plant amounting to UAH193 million, which is owed to Ukrainian businessman Dmytro Firtash`s Ostchem, limitations on the withdrawal of dividends from Ukraine, and the absence of tax privileges and benefits for the buyer amid general risks in the country`s economy. The high starting price of UAH13.175 billion, or about US$520 million, also discouraged investors.
As reported in mid-May 2016, the Ukrainian government approved the terms of privatization of a 99.6% stake in the chemical plant, with a starting offer of UAH13.175 billion. The bidding was scheduled for July 26, 2016. Norway`s Yara Norge; US-based IBE Trade Corp.; Koch Fertilizer, LLC and CF Industries Holdings, Inc; and Poland`s Ciech S.A. were among the potential buyers for the chemical plant.
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 and exports. The company holds a monopoly in the national market of specialized services for acceptance, cooling and transshipment of ammonia.