Ukraine`s Datagroup may be bought by Horizon Capital co-founded by Jaresko

The largest system integrator in the Ukrainian market Information and Computer Technology (Incom brand) collapses due to foreign currency loan debt, with its major asset – Datagroup telecom operator to be soon sold out to cover pay-off, according to Ukraine Today.
It may be purchased by its current minority shareholder – investment company Horizon Capital, co-founded by Ukraine`s current Finance Minister Natalie Jaresko, Ukraine Today reported.
Incom was founded in 1997. According to some media, in 2013 the Incom share was equal to 14% of Ukraine`s system integration market. Datagroup, part of the Incom holding, still remains a strong asset. This is one of the largest market players in the sector of fixed satellite communication and Internet access.
According to IKS Consulting, in 2015 Datagroup controlled 48.5% of the wholesale data transmission market. Kardakov says that Datagroup`s estimated turnover for 2015 amounted to about $1 billion.
At the end of 2014, Ukrainian Forbes estimated the 2012 total revenue of Incom founder Oleksandr Kardakov`s companies at $402 million, and his own capital — at $112 million. However, he could not cope with foreign currency loans borrowed for business development.
”Before the crisis of 2008, we actively attracted loans for new projects. Then it was all good. We saw good growth. I invested the borrowed funds into the development of Datagroup,” said Kardakov.
The troubled loan portfolio began to emerge in 2010. Then Horizon Capital purchased a 30% share from the majority shareholder Datagroup. The move was a necessity.
Kardakov`s company faced problems serving the $30 million debt with the ING bank. The company had to attract an investor, who also became a guarantor for the company`s other creditors.
It was not also easy to serve the remaining debt – in 2013 a political, as well as economic crisis, hit Ukraine. In 2015, Kardakov together with Incom minority shareholder Oleksandr Fedchenko decided to liquidate the company.
”What we did in our business before had no future prospects,” explained Kardakov.
According to him, last year Incom fully settled with the government – the company paid nearly $350,000 of tax compromise, and nearly $500,000 of other taxes. With regard to debts to the banks, the businessman says that ”they went on zeroing.”

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