(Reuters) Ukraine investment fund Pershiy Ukrainsky Fund Pryvatyzatsiyi (First Ukrainian Privatization Fund) has purchased a 20 percent stake in energy distribution company AT Kirovohradoblenergo, the State Property Fund (SPF) said on Wednesday.
The SPF did not say how much the investor had paid for the 596,880 shares in the company, located in central Ukraine. The starting price for the stake was set at Hr 7.58 million ($3.8 million) when the sale was announced in December. The buyer was also required to invest in upgrading the company and to pay off its debts.
AT Kirovohradoblenergo's authorized capital is Hr 29.84 million ($15.4 million). The government owns a 51 percent stake.
The announcement of the sale came just a day after the deputy head of Ukraine's State Property Fund Oleksandr Bondar said Ukraine was facing difficulties selling its energy companies, with many tenders failing to attract even one potential buyer.
Ukraine by the end of 1997 had announced sell-offs of its four energy generators and 14 power distribution companies – largely viewed as the crown jewels of the property still in state hands more than six years after independence. 'Proposals have not come in for the majority of announced competitions. For this reason we will be changing the dates of tenders and we will hold them again,' Bondar told reporters.
The state privatization agency has announced tender competitions for six of the energy distributors. Bondar said there was a lack of cash in Ukraine to buy stakes in the companies.
He also said tender competitions were over-regulated and that many of the energy companies were in difficult financial straits.
The SPF next month will choose companies to prepare energy generators Donbassenergo and Tsentrenergo to go up for tender.
The SPF also said on Wednesday that sales of stakes in another five companies with varied business profiles had failed to take place. A statement, which did not provide reasons for the non-sales, said stakes would be offered again in the following companies:
– 45 percent of AT Lisichansknaftoprodukt, a retailer of crude oil-related products, to the buyer offering the best investment plan;
– 51 percent of the AT Poltavsky Zavod Hasorozryadnykh Lamp (Poltava Gas Lamp Factory), to the buyer offering the best investment plan;
– 51 percent of AT Motor, producer of electric saws in the western city of Kamyanets Podilsk, to the buyer with the best investment plan;
– 26 percent of the Korsun-Shevchenkivsky Machinobudivelny Zavod (engineering company) to the investor offering the most money;
– 30 percent of AT Zakarpatspetzkomplekthaz, maker of gas-related products, to the buyer offering the largest investment;
– 20 percent of AT Khmelnytskoblenergo, a regional power distribution company, to the buyer offering the best investment plan;
– 20 percent of AT Volynoblenergo, a regional power distributor, to the buyer offering the best investment plan;
– 30 percent of AT Synelnykivsky Resorny Zavod, a car parts manufacturer, to the highest bidder;
– 52 percent of AT Pivdenelektromash, a machine-builder, to the buyer offering the best investment plan; – 51 percent of AT Modul, a building supply company, in the western city of
Kamyanets Podilsk, to the buyer offering the best investment plan.
