The starting price of shares in Odesa Port-Side Plant of Hr 13.175 billion or around $523 million is balanced, Ukraine's State Property Fund (SPF) said on its website on June 2 with the reference to its head Ihor Bilous.
“In comparison to many Ukrainian ‘experts’ international advisors believe that this price is set slightly too high… The fund is convinced that the starting price is factored and balanced,” he said.
The fund’s publication appeared after Reuters news agency published a letter of representatives of the International Monetary Fund (IMF) and the European Bank for Reconstruction and Development (EBRD) to the Ukrainian prime minister dated May 27. In the letter they said that Ukraine has set too high a reserve price for its flagship privatization of Odesa Port-Side Plant that could deter reputable foreign investors from bidding.
The EBRD representative office told Interfax-Ukraine that the letter was really sent.
Bilous pointed out the plant’s potential and its strategic location for the sector.
He said that after an independent appraisal of 99.567% of shares in the plant using three methods the price range was from $506 to $527 million, and the construction of the similar plant from the ground up would cost $1-1.5 billion, while the Ukrainian enterprise is offered for $719 million, taking into account its debt.
He added that as of May 20, 2016, there were five potential buyers and negotiations were held with five more bidders.
