Ukraine approves privatization terms for UMCC Titanium with starting price of $95 mln
MOSCOW. July 15 (Interfax) - The Ukrainian government on Friday approved the conditions for the privatization of UMCC Titanium, a miner and processor of titanium raw material, and set the starting price at UAH3.9 billion (about $95.4 million at the current exchange rate).
The government resolved to "take under advisement the starting price for the stake in the amount of UAH3,899,358,000 determined by the advisor, BDO Corporate Finances LLC," Ukrainian media reported, citing a cabinet order issued on July 12.
The sale will offer all 1.944 billion shares in the company, amounting to 100% of its equity.
Ukraine's State Property Fund said earlier that the sale of UMCC Titanium is a major privatization because this is a state asset with a book value of more than UAH250 million.
Property Fund head Vitaly Koval said in May that the fund had completed drawing up a list of major privatization assets for 2024. He said the most valuable assets were UMCC Titanium, which would be offered at a starting price of UAH3.7 billion-3.9 billion, and Aeroc, major autoclaved aerated concrete producer with several facilities worth about UAH1 billion. There are also plans to sell a 66.65% stake in Kiev shopping center Ocean Plaza and the Ukraine hotel at starting prices of UAH1.63 billion and UAH1.8 billion, respectively.
The auctions for these assets will be announced after the starting prices and sale conditions are approved by the Cabinet.
UMCC began actual operations as a state company in August 2014, when the Ukrainian government decided to give it control of the assets of the Volnogorsk Mining and Metallurgical Plant and Irshansk Mining and Processing Plant (IMPP). They were previously leased by companies controlled by businessman Dmitry Firtash.
UMCC previously sold its products to more than 30 countries and was one of the world's largest producers of titanium raw materials, with a 4% share of the global market.
The official exchange rate was UAH40.88/$1 on July 12.
