Five Companies Submit Applications For Privatization Of Ukrtelecom

BIC098Five companies have submitted applications to familiarize themselves with the documentation on privatization of Ukrtelecom, Ukraine’s largest telecommunication company.

State Property Fund Chairman Oleksandr Riabchenko announced this at a press conference.

He noted that the State Property Fund of Ukraine has signed agreements on familiarization with the tender documents with three companies, including one Ukrainian company, one Russian company, and one non-CIS company.

“Another two companies have submitted applications to sign confidentiality agreements,” he said.

He said the agreements with the two companies have yet to be signed. Both companies are Ukrainian residents.

State Property Fund Chairman Riabchenko said he was bewildered at a ruling of the Kyiv City Economic Court dated November 8 on a lawsuit from the Ivinvest Company (Majuro, Marshall Islands).

The court obliged the State Property Fund to fully abide by the Ukrainian privatization legislation and the provisions on the tender. He said the State Property Fund would abide by the ruling of the court. However, the State Property Fund can appeal against it.

He said he held talks with several companies that could have triggered the ruling. All of the companies denied their being engaged in it.

Riabchenko did not name the companies that requested documentation on Ukrtelecom, but he stressed that they did not include Turkcell (Turkey), Astelit (Kyiv), and System Capital Management (Donetsk).

At the same time, he said that the Turkish embassy has expressed interest in the documentation. In particular, he said that Turkish diplomats have requested the official text of the announcement of the competition for Ukrtelecom in the English language.

Riabchenko added that the State Property Fund was unable to fulfill this request because the official texts of announcements of privatization competitions exist only in the Ukrainian language.

As Ukrainian News earlier reported, the State Property Fund on October 13 announced a tender to sell 92.79% of the shares of the Ukrtelecom telecommunication company.

The starting price of the 92.79% stake is UAH 10.5 billion.

The State Property Fund expects the selling price of 92.79% of the shares in Ukrtelecom, the largest telecommunications company in Ukraine, to be UAH 11-12 billion.

As at November 10, three companies submitted their applications for the privatization tender.

The Kyiv City Business Court in its ruling dated November 8 on a lawsuit from the Ivinvest Company (Majuro, Marshall Islands) prohibits any persons from hindering the State Property Fund of Ukraine and other competent state bodies in their holding a tender on privatization of 92.79% of the shares of the Ukrtelecom telecommunication company.

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