: :inin Kyiv (EET)

Odesa Portside Chemical Plant’s sale fails due to lack of bids from investors. Again

A new tender to sell 99.6% of shares of Odesa Portside Chemical Plant (OPP) will not take place due to a lack of bids from investors, the press service of the State Property Fund of Ukraine reported.

The auction was to be held on December 14 with a starting price of UAH 5.16 billion, or about $200 million.

”Applications from potential investors for participation in the tender have not been received, though around 10 potential buyers showed interest in the company. Four investors, most of whom are foreign entities, sent a letter of intent to acquire OPP shares, signed a confidentiality agreement with the State Property Fund, prepared a package of necessary documents, but did not submit applications for participation in the tender,” the press service of the State Property Fund said.

As UNIAN reported earlier, the Ukrainian Cabinet at its meeting October 19 approved 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.

On Wednesday, Ukrnaftoburinnia oil company refused to participate in a tender for the privatization of 99.6% state-owned shares in the Odesa Port-Side Chemical Plant (OPP), scheduled for Dec. 14, with a starting price at UAH 5.16 billion (about $200 million).

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 receipt, cooling and transshipment of ammonia.


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