Ukraine sells seized Pentopak plant at reduced price on second try
MOSCOW. June 11 (Interfax) - Ukraine's State Property Fund (SPF) has sold the nationalized food skin packaging manufacturer Pentopak for UAH103.11 million (about $2.56 million at the current exchange rate) in a new auction with a reduced starting price, Ukrainian media reported, citing SPF head Vitaly Koval.
"The buyer has 20 days to pay the price of the lot. In addition to the offered price, the investor has already paid a security deposit in the amount of UAH20.375 million," Koval said on social media.
He recalled that Pentopak was confiscated from Russian businessman Ivan Savvidis and the proceeds from its sale will go toward Ukraine's restoration.
The buyer is Lonikos LLC, a Kiev-based company whose core business is "leasing and operation of its own or leased real estate."
The SPF initially set the starting price for Pentopak at UAH203.7 million and scheduled an auction to sell it for May 31, but it was called off. At the second auction, the starting price was slashed by half to UAH101.87 million.
Pentopak has fully integrated production facilities to manufacture multilayer synthetic heat shrink skin packaging for processed meat products. The company's customers include well-known Ukrainian brands such as Rud, Globino, Myasnaya Gildiya, as well as clients in over 30 countries.
The company has retained 193 jobs and has no debts on wages or to the government. Pentopak plans to modernize its production lines and enter new markets for packaging materials for the dairy industry, fish products and pet food.
Approached for comment by Interfax, Agrocom Group, which previously owned Pentopak, said only that such an asset could cost 45 million-50 million euros.
Ukraine's High Anti-Corruption Court made the decision to confiscate the plant in February 2024. In addition to Pentopak, the authorities confiscated 100% of shares in Atlantis-Pak Ukraine. These companies, according to the Ukrainian Justice Ministry, were owned by Savvidis' spouse, Kyriaki Savvidis. The court applied measures prescribed by Ukraine's sanctions law against the pair.
Agrocom Group, founded in 2004, includes about 600 companies in the food industry, agriculture, packaging and retail sectors. One of the group's key companies is PCF Atlantis-Pak LLC, Russia's largest manufacturer of plastic sausage casing. The group's management company is based in Rostov, and most of its businesses are located in Russia's Southern Federal District.
