KYIV, Apr. 5 (Ukrainian News) – The Cabinet of Ministers approved a decision to sell the state’s 51 percent share in UMC, Economy Minister Vasyl Rohovy told journalists on Wednesday.
Rohovy also heads the government’s commission on Ukrtelecom’s privatization.
According to Rohovy, the issue of what size share package to sell – 25 or 50 percent – was raised at a Cabinet meeting.
Rohovy said the Cabinet decided to sell the state’s entire share package to increase the investment attractiveness of Ukrtelecom’s privatization, which the Cabinet plans to conduct by the end of this year.
Rohovy said that presumably, the starting price of the share package would be $200 million.
Ukrtelecom will keep 30 percent of the funds obtained from the sale, 10 percent will be directed to the Defense Ministry, and 60 percent will go to the state budget.
The statutory fund of UMC is $15 million.
In addition to the state, which owns 51 percent of UMC through Ukrtelecom, Deutsche Telecom, Teledenmark, and KPN each own a 16.3 percent share in the company, but KPN intends to sell its share in UMC.
UMC finished last year with profits of $18 million.
