: Ukraine sets date for Odesa Port Plant auction

18:21 Jun. 15, 2016

Ukraine sets date for Odesa Port Plant auction

Odesa Port Plant is put up for sale (UNIAN photo)

European and Latin American companies interested in buying Ukraine's largest chemical producer

The investors from both Latin America and Europe are interested in purchasing 99,6% shares of Ukraine's largest manufacturer of chemical products – Odesa Port Plant (OPP). The tender competition will take place on July 26.

This is according to the Deputy Chairman of the State Property Fund of Ukraine (SPF) Andriy Haidutsky.

"After the notification about the competition, one potential buyer from Latin America appeared, and we are expecting another one from Europe – it is an international company. For now, there were no applications for the participation from the Ukrainian companies," Haidutsky said during a press conference.

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Out of the 7 potential buyers of the OPP that have already signed non-disclosure agreements – 2 or 3 have a final beneficiary in the U.S.

"We hope that there will be also another Canadian company," the Deputy Chairman of the SPF added.

Haidutsky underlined that the transparency of the whole sale process not even the price is among the priorities of the plant privatization.

As previously reported, in the middle of May, Ukraine's Government approved the terms of privatization of the Odesa Port Plant with the reserve price of UAH 13,175 billion [more than USD 520 mln].

Responding to the criticism that the price is too high, the State Property Fund said it was a result of an independent evaluation, and it was approved by the Tender Commission for the Plant's privatization.

The potential buyers include Norwegian company Yara, American IBE Trade, Koch Fertilizers, CF Industries, and Polish Ciech.

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. 

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