SCM May Partner With Other Companies To Bid For Ukrtelecom

The System Capital Management company (Donetsk) may partner with other companies to bid for the state’s stake in Ukrtelecom, the largest telecommunications company in Ukraine.

Ilia Arkhipov, the director of business development at the System Capital Management company, announced this at a press conference.

“We are holding talks with several partners and, possibly, we will participate in a competition to privatize Ukrtelecom,” he said.

He stressed that the company has not yet made a final decision on whether to participate in the competition and how to participate in it.

As Ukrainian News earlier reported, the State Property Fund announced a competition for 92.79% of the shares in Ukrtelecom on October 13 and set the starting price at UAH 10.5 billion.

Companies in Ukraine as well as companies from Russia and other countries have submitted bids.

SCM is aiming to increase the value of its assets 2.7-fold to USD 50 billion by the year 2021.

SCM’s General Director Oleh Popov has said that the company is planning to branch into 2-3 more areas of operation.

The Donetsk-based System Capital Management company ended 2009 with a consolidated profit of USD 283 million.

The company’s consolidated gross revenues reduced by USD 7.834 billion or 49% to USD 8.151 billion, compared with 2008.

SCM owns and manages assets in the ore mining, metallurgical, energy, telecommunications, banking, insurance, media, retail, and real-estate industries.

Businessman Rinat Akhmetov owns 100% of the shares in System Capital Management.

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