Ukraine approves privatization terms for UMCC with UAH 3.9 bln starting price
The Ukrainian government on Friday approved the privatization terms of PrJSC United Mining and Chemical Company (UMCC), which manages the Vilnohirsk Mining and Metallurgical Plant (Dnipropetrovsk region) and the Irshansk Mining and Processing Plant (Zhytomyr region), setting a starting price of UAH 3.899 billion.
"Take into account the starting price of the share package determined by the advisor – BDO Corporate Finance LLC – at UAH 3.899 billion," the government said in its directive No. 643 dated July 12 posted on its website.
All 1.944 billion shares, representing 100% of the charter capital, will be put up for sale.
Previously, the State Property Fund (SPF) indicated that the sale of UMCC falls under large-scale privatization, as it involves the sale of state-owned assets with a book value exceeding UAH 250 million. The SPF has already held auction commissions for the sale of the Hotel Ukraine, UMCC, and the state-owned share in the charter capital of Investment Union Lybid LLC (Ocean Plaza shopping center). Auctions for the sale of these assets will be announced after the starting prices and sale conditions are approved by the Cabinet of Ministers. All auctions will take place in the public electronic system Prozorro.Sales. Proceeds from the privatization of state-owned enterprises are directed to Ukraine's state budget, while proceeds from the privatization of nationalized assets go to the Fund for Elimination of the Consequences of Armed Aggression.
UMCC began its actual activities in August 2014, when the Ukrainian government decided to transfer the property complexes of the Vilnohirsk Mining and Metallurgical Plant and the Irshansk Mining and Processing Plant to its management. On December 8, 2016, the state-owned enterprise was transformed into UMCC, and on December 26, 2018, it was further transformed from public joint stock company to the private joint stock company.
UMCC previously sold products to more than 30 countries worldwide. The main markets were the EU, China, Türkiye, as well as the United States and African countries.
