Ukraine approves starting price of $520 mln for Odessa Port Plant
KYIV. May 18 (Interfax) - The Ukrainian government has approved a starting price of UAH 13.75 billion ($520 million at the current rate) for the sale of the state 99.6% stake in Odessa Port Plant (OPP), a producer of ammonia, urea and of some other chemical by-products.
"All the preparations for the privatization of the plant have been completed. As the result of an independent valuation of the state-owned stake in Odessa Port Plant, the tender commission for the privatization set the starting price at UAH 13.175 billion. We are talking about a package of 795.084 million shares, or 99.6% of the company's shares," State Property Fund (SPF) head Ihor Bilous said, presenting the relevant draft government resolution.
The terms of privatization of the Odessa Port Plant proposed by the State Property Fund say that the tender may take place only if there are at least two bidders (one of which is a non-resident of Ukraine). Russian companies will not be allowed to participate in the tender.
Bilous said the plant's buyer will have to deal with the company's debt of $193 million (excluding penalties) to Ostchem Holding.
Ukraine had planned to sell OPP for at least $600 million.