"United Mining and Chemical Company" | News | State Property Fund of Ukraine is taking over the management of JSC UMCC
State Property Fund of Ukraine is taking over the management of JSC UMCC
24.10.2019The State Property Fund of Ukraine (hereinafter – SPFU) has approved the transfer of 100% of shares of Joint Stock Company “United Mining and Chemical Company” from Ministry of Economic Development to own management for the purpose of subsequent privatization.
This is the next step towards the sale of the company at an open tender planned by the government. At the time of privatization, the property and all shares of JSC UMCC must be under the management of the SPFU and on the accounts of the agency, comments Oleksandr Gladushko, Acting Chairman of the Board of JSC UMCC. “The process is going rather dynamically. We are moving towards an investor, which makes us very happy,” comments the head of the company. The next step the company expects is transfer of UMCC shares to the State Property Fund of Ukraine by the depositary.
The head of the United Mining and Chemical Company believes that the SPFU is receiving the company with great achievements. Over the past 2-3 years, during which UMCC was subordinated to the Ministry of Economic Development, it has substantially modernized production assets of both its subsidiaries – Vilnohirsk Mining and Metallurgical Plant and Irshansk Mining and Processing Plant. Over the past four years, capital investment exceeded UAH 1.2 billion, investment into equipment and specialized machinery reached nearly UAH 400 million. Since the time of the company’s establishment and until 2018, the value of its assets quadrupled – from UAH 800 million to UAH 3.4 billion. “The subsidiaries have not seen this kind of upgrade in their long history. We are hoping that the investor will continue what we’ve started and bring the company to a new level of development,” says Oleksandr Gladushko.
As a reminder, the first steps towards the sale of JSC UMCC at an open tender were taken on October 9, when Tymofiy Mylovanov, Minister of Economic Development, Trade and Agriculture of Ukraine, signed the order on the transfer of the company into the management of the SPFU. On October 10, UMCC management already discussed the steps for the preparation of the company for the privatization and the deadlines with the advisor – BDO Corporate Finance LLC. The advisor will propose the conditions of the tender and determine the starting price of JSC UMCC. So, the decision on the transfer of the shares of the company into the management of the State Property Fund is a logical and consistent step towards privatization, the management of the company believes.
In 2018, net profit of United Mining and Chemical Company amounted to UAH 114.887 million, net sales – UAH 3.214 billion, value of fixed assets – UAH 3.374 billion, according to the results of the financial audit.
In the five years of operation in the global titanium markets, JSC UMCC earned nearly UAH 13 billion from sales and also paid over UAH 5 billion in taxes, duties and mandatory payments to the national and local budgets.