Consortium Formed to Prepare Odessa Port Plant for Privatization

23 Авг

The company Pericles Global Advisory having won the competitive selection of consultants to prepare the PJS Odessa Port Plant (OPP) for privatization is going to act in consortium with the companies White & Case LLP, Kinstellar, KPMG Ukraine, and SARS Сapital. This was announced by Acting Head of State Property Fund (SPF) of Ukraine Vitalii Trubarov.
“We have discussed essential clauses of the agreement, sales strategy and ways of liabilities restructuring. Among other important tasks are building the OPP’s financial pattern, searching for a strategic investor, and conducting all relevant audits with conclusions trustworthy for international investors”, he wrote in Facebook on the outcomes of the business meeting in SPF with Pericles Global Advisory on 22 August.
SPF in late July chose Pericles Global Advisory LLC as consultants on preparation of OPP to privatization. The company undertook to provide all the necessary audits, develop the venture’s financial pattern, carry out search of potential investors as well as solve OPP liabilities toxicity problems in three months.
The starting price for 99,5667 % of OPP’s stock will amount to $54M.
In 2016 OPP was twice offered for privatization yet both times in vain. At July’s bidding the starting price reached 13.175Bn UAH, at December’s – 5.16Bn UAH.
OPP focuses on production of ammonia, carbamide, and other chemicals. The plant also deals with transshipment of ammonia (handling capacity 4M t annually), carbamide (3.6M t), and methanol (1M t). Chemical products from third parties comes to the plant’s facilities by railroad and the 2,417 km ammonia pipeline Togliatti – Gorlovka – Odessa. The state’s corporate rights in the PJS OPP are managed by SPF.
By the outcomes of 2016 OPP declared net loss of 2,987.47M UAH against net profit of 218.514M UAH the previous year.

Source: https://ports.com.ua/news/sformirovan-konsortsium-dlya-podgotovki-opz-k-privatizatsii