16:12 Aug. 31, 2016
Ukraine's government allows a reduced starting price for the company before the second round of its privatization
The Cabinet of Ministers has supported the suggestion by the State Property Fund of Ukraine (SPFU) to change the starting price of Odesa Port-Side Chemical Plant before the second round of the company's privatization.
A tender to sell 99.6% of shares of the Plant at the starting price of UAH 13.175 billion (USD 520 million) failed due to the lack of interest from investors. One of the reasons was said to be the high price.
"There was an auction but no bid was received. All experts are saying that the price was too high. I think that we should allow the State Property Fund to define the Plant's starting price, which could attract the biggest number of buyers. Then, we will approve it", Volodymyr Groysman, Ukraine's PM, said.
The SPFU is considering the possibility of reducing the price of the plant by half in comparision to the original price, which had been introduced before the auction start scheduled for July 26, 2016.
The government has also chosen another 320 state companies, which can be subject to privatization.
The Odesa Port Plant was founded in 1974 and is based in the city of Yuzhne, Odesa region. It is the second largest manufacturer of ammonia and carbamide in Ukraine.