Austrian-Based EPIC’s Subsidiary To Invest UAH 450 Million In Development Of Ukrtelecom Within Five Years Of Acquiring It

BIC098The Kyiv-based ESU company (EPIC Services Ukraine), which is a subsidiary of the EPIC concern (Austria), intends to invest UAH 450 million in development of the Ukrtelecom telecommunication company over a period of five years after acquiring it.

A representative of the State Property Fund announced this to Ukrainian News.

According to the representative, the competition commission for sale of Ukrtelecom has unsealed the bid submitted by ESU (the only company to submit a bid for Ukrtelecom).

The program for development of Ukrtelecom that is stipulated in the competition documentation provides for investment of UAH 450 million in the company’s development (ESU plans to invest this amount primarily in development of broadband internet and preservation of Ukrtelecom’s share of the market of fixed-line communications services).

The competition commission concluded that the program that ESU proposed for development of Ukrtelecom meets the terms of the competition.

In addition, the bid that ESU submitted for Ukrtelecom was UAH 10 more than the starting price of UAH 10.5 billion that was set by the State Property Fund.

ESU also agreed with the State Property Fund’s plan to review the price of Ukrtelecom based on an independent valuation of the telecommunication company (the reviewed price cannot be lower than the price offered by ESU).
As Ukrainian News earlier reported, the State Property Fund’s Chairman Oleksandr Riabchenko said on December 21 that ESU was the only company to have submitted a bid for 92.79% of the shares in Ukrtelecom.

Riabchenko added that the competition for 92.79% of the shares in Ukrtelecom would not be held on December 28, as planned, because of the single bid submitted.

Instead, the sole bidder will be asked to buy the stake at a price determined based on the independent valuation.
The State Property Fund announced a competition for the right to conduct an independent valuation of Ukrtelecom on December 22. The competition is expected to take place on January 6, 2011.

The ESU company was founded as RBScom in Kyiv in December 2005.

EPIC acquire RBScom in July 2006 and renamed it as ESU (EPIC Services Ukraine).

Its main areas of operation are establishment and modernization of mobile communications networks, technical support, network services, equipment supply, and logistical services.

EPIC is an investment and consulting company that provides services involving privatization in Central and Eastern European countries.

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