: :inin Kyiv (EET)

Odesa Port-Side Chemical Plant in focus of 6-7 investors: State Property Fund chief

The State Property Fund of Ukraine (SPFU) is consulting on the privatization of 99.6% state-owned shares in the Odesa Port-Side Chemical Plant (OPP) with six to seven investors, SPFU Head Ihor Bilous told the Ukrainian TV Channel 5.

”Many people have not yet made a decision. Investors have two weeks, until December 6, when it is possible to apply. We are in a dialogue with six-seven companies. Someone is ”sitting in the bush”, someone is mulling a last-minute decision, and someone will refuse – this is not a process that can be predicted,” Bilous said.

According to him, after the submission of applications for participation in the bidding, the investors will be verified and on December 9, the State Property Fund will announce the contestants.

Bilous also noted that there was a constant interest among investors to buy state-owned shares in Khmelnytskoblenergo, Mykolaivoblenergo, Kharkivoblenergo, Ternopiloblenergo, Zaporizhiaoblenergo and Cherkasyoblenergo.

”These are natural monopolies… In addition, the market is going toward liberalization. Stimulating tariff calculations will make it clear how profitable these businesses will be in the next five years. This explains the healthy interest,” he stressed, adding that the fund plans to sell six power companies for $250-350 million.

As UNIAN reported earlier, the Ukrainian Cabinet on October 19 approved the conditions for a new auction to sell 99.6% of shares of Odesa Portside Chemical Plant at a starting price of UAH 5.16 billion (nearly $200 million).

The starting price approved is 2.6 times lower than that set by the Cabinet in July prior to the first bidding, which failed due to lack of demand from investors.

Four investors – from the United States, Oman, Turkey, and Egypt – are interested in the acquisition.

Odesa Portside Chemical Plant (the town of Yuzhniy, Odesa region) is Ukraine`s second largest producer of ammonia and urea, and the third largest producer of nitrogen fertilizers. It specializes in reloading chemicals coming from CIS countries for further export. The plant is a monopoly on the national market of specialized services for reception, cooling and reloading of ammonia.


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