Property Fund Sells 92.8% Of Ukrtelecom To Austria’s EPIC Subsidiary For UAH 10.6 Billion

The State Property Fund of Ukraine sold 92.79% of shares in Ukrtelecom, Ukraine’s biggest telecommunication company, to ESU (Kyiv; subsidiary of the European Privatisation and Investment Corporation, EPIC, Austria) for UAH 10.575 billion.

From the Property Fund side it was signed by its Chairman, Oleksandr Riabchenko, from the EPIC side by Wolfgang Heritsch, authorised by the ESU subsidiary company.

As to Riabchenko, the buyer has to pay the total sum in sixty days (half in thirty days and the other half over the next thirty).

He says that Ukrtelecom has USD 160 million and UAH 3.7 billion of debt liabilities as of March 11.

The Property Fund Chairman underlines, one of the investment obligations of the new owner of the company is building a special communication system within two years (approximate investments in this system make about USD 200 million).

On the whole Riabchenko is positive about the sale of the operator, noting that if Ukrtelecom were sold a year later its cost would be lower.

As Ukrainian News earlier reported, ESU in February officially affirmed its agreement to acquire 92.79% of the shares in Ukrtelecom for UAH 10.575 billion, the price the State Property Fund quoted basing on results of an expert appraisal.

ESU was the only bidder for the acquisition of the 92.8-percent stake in Ukrtelecom, which was the reason for the Fund to apply the procedure of appraising the value of the shares in the company.

The expert appraisal was UAH 75 million higher that the starting price set by the Property Fund for the privatisation competition, which had been scheduled for December 28, 2010.

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