"United Mining and Chemical Company" | News | Preparation for privatization is gaining momentum
Preparation for privatization is gaining momentum
31.10.2019On Wednesday, October 30, the third working meeting of JSC UMCC’s management and representatives of the privatization advisor – BDO Corporate Finance, took place.
The parties discussed the preparation of information on JSC United Mining and Chemical Company, which will be useful for formation of the company’s passport and conditions of its sale. As a reminder, BDO Corporate Finance LLC will propose the conditions of sale of JSC UMMC and the starting price.
The advisors gave a high praise to the rate of preparation of the required information by the UMCC employees. “Nearly 80% of data has been already gathered, covering different areas of the company’s life and operation and that are required at the first stage of the preparation. They will help potential investors to form a full idea about the asset and its value,” stated Oleksandr Gladushko, Acting Chairman of the Board of JSC UMCC, commenting on the meeting. He thanked the employees, who were responsible for collecting information, for their quick work.
In addition to the working meetings that have been held at the office, the representatives of BDO Corporate Finance have already learned about the peculiarities of extraction and production technology at Vilnohirsk Mining and Metallurgical Plant, a subsidiary of JSC UMCC. Now, they are expected to visit another subsidiary – Irshansk Mining and Processing Plant with the same purpose.
UMCC management and representatives of BDO Corporate Finance are satisfied with the cohesion around the company’s preparation for privatization. There are grounds to believe that the sale of JSC United Mining and Chemical Company will become an example of the first successful open and transparent tender at the start of 2020.
Such plan was announced by Dmytro Sennychenko, Head of the State Property Fund of Ukraine, at the First International Investment Forum “RE: Think. Invest in Ukraine” in Mariupol on October 29. According to the plan presented by the SPF head, the sale of JSC UMCC and SE Eletrovazhmash must take place in the first half of 2020. “We fully support the terms of sale of UMCC announced by the leadership of the State Property Fund of Ukraine and will take all the efforts required from us to ensure the proper level of preparation for the privatization,” ensured Oleksandr Gladushko.
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. Capital investment into fixed assets exceeded UAH 1.2 billion, while investment into production totaled UAH 400 million.