"United Mining and Chemical Company" | News | JSC UMCC is being transferred to the State Property Fund for privatization

JSC UMCC is being transferred to the State Property Fund for privatization
JSC UMCC is being transferred to the State Property Fund for privatization

09.10.2019

JSC United Mining and Chemical Company is being transferred into management of the State Property Fund of Ukraine, according to the Order of the Ministry of Economic Development, Trade and Agriculture of Ukraine (hereinafter – the Ministry) dated October 9, 2019. “Transfer the functions of management of the package of shares of the joint stock company “United Mining and Chemical Company” to the State Property Fund of Ukraine,” reads the document.
 
The staff of UMCC has welcomed the decision of the Ministry and hopes for timely, transparent and fair privatization of the company. “The Order of the Ministry of Economic Development for us is factually the start of privatization. We welcome its start,” says Oleksandr Gladushko, Acting Chairman of the Board of United Mining and Chemical Company. There is a period of hard work on the preparation of the company for the sale, he says.
 
As a reminder, the Cabinet of Ministers of Ukraine issued the resolution No. 883-r dated September 25, 2019, approving BDO Corporate Finance LLC as the advisor for privatization and sale of the share package of JSC UMCC in the amount of 100% of the company’s authorized capital. Under condition of performance of the full scope of services by the advisor, it will receive a fixed part of the remuneration in the amount of UAH 12.258 million and variable part of the remuneration in the amount of 1% of the cost of the sold share package of the company.
 
According to the procedure of preparation for the privatization, the advisor must:
 
  • ensure performance of the financial audit of the company;
  • draft the financial model and determine investment attractiveness of the company;
  • determine the starting price and prepare information package regarding UMCC;
  • perform Due Diligence, which envisages general, financial, tax, legal, operational and technological audit of the company;
  • carry out SWOT analysis (in particular, of competitive positions of the company in the markets);
  • evaluate mineral reserves of subsidiaries of UMCC;
  • find potential investors and provide them with information about the company;
  • provide recommendations regarding conditions of sale;
  • provide support for the tender.
 
The advisor must complete preparation of JSC UMCC for privatization within four months upon signature of the agreement for rendering of services.