(Wire reports) The Cabinet will announce the sell-offs of seven regional electricity distributors, or oblenergos, soon and plans to find investors for the lucrative companies by the end of the year, Cabinet spokeswoman Natalia Zarudna said.
The companies slated for privatization are Zhytomyroblenergo (75.56 percent stake), Kyivoblenergo (75 percent), Rivneoblenergo (75 percent), Mykolayivoblenergo (70 percent), Sevastopolenergo (70 percent), Khersonoblenergo (65 percent), Kirovohradoblenergo (51 percent).
Credit Suisse First Boston investment bank is advising the government on the sell-offs. CSFB-Ukraine President Oleksandr Bazarov has said the bank already notified a large number of potential buyers but only 10 of them expressed interest in privatizing Ukrainian energy companies. He also said CSFB approached only foreign investors.
“We did not send [any information regarding oblenergo privatization] to Ukrainian companies,” Bazarov said.
He said CSFB also proposed that the government restructure oblenergos’ debts before they are put up for sale.
“That should definitely be done before the sell-off,” Bazarov told Ukrainian News.
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Following the sale of a 30 percent stake in the Mykolayiv alumina plant earlier this year, the State Property Fund will sell the remaining 25 percent stake in the plant owned by the state by the end of the year, the SPF press service said.
The shares are to be sold on the stock exchange by the end of the year in three packages: two 10 percent and one 5 percent.
SPF chief Oleksandr Bondar earlier said that such a plan would help attract portfolio investors and form competition to Ukrainian Aluminum, which controls 66 percent of MAP.
Ukrainian Aluminum is a subsidiary of Russia’s Siberian Aluminum.
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The State Property Fund will make a second attempt to sell a 65.8 percent stake in Azovkabel cable producer based in Zaporizhia oblast on Nov. 2, the SPF said.
The starting price of the stake was set at Hr 8.2 million.
The winner of the tender will be required to pay off part of the factory’s Hr 2.2 million overdue debt and upgrade its facilities.
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The SPF announced a tender for the sale of a 36.5 percent stake in LuhanskNaftoProdukt oil products distributor, the fund said. The stake was offered for Hr 6 million. The winner of the tender will be required to pay off the company’s debts within two months.
