The Ukrainian State Property Fund (SPF) and ESU LLC, a subsidiary of Austria’s EPIC Concern, have signed an agreement paving the way for the sale of a 92.79% stake in the country’s incumbent telco Ukrtelecom for UAH10.575 billion (€954.36 million).
Quoted in an agency report, SPF head Oleksandr Riabchenko said that the buyer ESU LLC would pay UAH9.535 billion – the purchase sum minus a UAH1.05 billion bid deposit – over the next 60 days, with half of the amount due in the next 30 days.
The privatisation of Ukrtelecom has been on the agenda for a number of years and finally got under way last October, when SPF announced a tender and set UAH10.5 billion as the starting price.
ESU LLC was the only bidder, and as a result value of the stake was reassessed at UAH10.575 billion, which ESU LLC agreed to pay.
The latter now plans to attract a strategic investor or hold an IPO within the next 4-5 years.