14 Nov 2022 16:38

Ukrainian Exchange delists Ukrnafta, Motor Sich

MOSCOW. Nov 14 (Interfax) - Ukrainian Exchange has decided to delist shares of Ukrnafta and Motor Sich, which were expropriated on November 6 by decision of the Headquarters of the Supreme Commander-in-Chief.

"On November 14, 2022, the following securities will be delisted due to the lack of shares in free trade: MSICH Motor Sich, JSC and UNAF Ukrnafta, PJSC," Ukrainian media quoted the exchange as saying on its website.

These shares were removed from the exchange's basket last week.

Despite the expropriation of all shares on November 6, there are still bids for Ukrnafta's shares on the exchange, and their price has grown to 337 hryvni per share, although the company's stock traded at 229.69 hryvni per share just prior to their expropriation, meaning that the company's capitalization amounted to about 12.5 billion hryvni at the time.

Ukrnafta's weight in the index basket was 22.85% and Motor Sich's 33.06%.

As reported earlier, the Headquarters of the Supreme Commander-in-Chief ruled on November 5 to expropriate the shares of Ukrnafta, of Ukrtatnafta, except for the stake held by Naftogaz, of Motor Sich, AvtoKrAZ, and Zaporozhtransformator as military assets while martial law remains in effect.

Naftogaz, the national oil and gas company, owns a controlling stake in Ukrnafta, while a minority stake of about 42% is owned by the Privat Group of Igor Kolomoisky and Gennady Bogolyubov; the situation is the reverse at Ukrtatnafta, or Kremenchug Oil Refinery.

All shares of the Motor Sich plant, the largest owner of which was the company's recently arrested president, Vyacheslav Boguslayev, have been frozen since April 2018 following the sale of a controlling stake to China's Skyrizon and related entities a year earlier.

AvtoKrAZ and Zaporozhtransformator, controlled by Konstantin Zhevago and Konstantin Grigorishin, respectively, have been in bankruptcy proceedings in recent years.

Ukrainian Exchange is among the top three exchanges in Ukraine by the securities trading volume.