"United Mining and Chemical Company" | News | BDO Corporate Finance praises UMCC management and the company’s level of readiness for privatization

BDO Corporate Finance praises UMCC management and the company’s level of readiness for privatization
BDO Corporate Finance praises UMCC management and the company’s level of readiness for privatization

03.03.2020

Vitaliy Strukov, Managing Partner at BDO Corporate Finance, praised UMCC management and the company’s level of readiness for privatization at the working meeting with Kostyantyn Koshelenko, Deputy Head of the State Property Fund and UMCC management on Thursday, February 27. The meeting took place at the company’s office.
BDO Corporate Finance is acting as the advisor on privatization of JSC United Mining and Chemical Company, appointed by the government. It is carrying out comprehensive audit and Due Diligence of UMCC, studying the demand from the buyers and preparing the proposal for the starting price of privatization.
During his speech, Vitaliy Strukov thanked UMCC management for cooperation, pointing that there were no attempts at interfering with the preparation for privatization or trying to reduce the value of the asset by the UMCC employees. “There have been no obstacles. We worked well together; all our contractors also point to that. We are satisfied with the cooperation,” he said.
Also, speaking to the participants of the meeting, the head of the advisor informed that during collection of information, UMCC management of middle and upper level has shown high level of professionalism. “This is very important that there are top managers and specialists, who can explain, tell, present the company,” said Strukov.
Strukov says that professionalism of the management and its knowledge of the company’s business will be required, when potential investors visit the production and meet with the company’s top management. Such visited are expected to take place in April-May 2020. Thus, the advisor made a recommendation not to change the management of the company.
Kostyantyn Koshelenko, Deputy Head of State Property Fund and Mykhailo Makarov, Acting Chairman of the Board of JSC UMCC, upon hearing the information delivered by the advisor, informed that they will work to keep the pace of the preparation for privatization of JSC UMCC, as a lot of work has already been done in this area.
In particular, according to Vitaliy Strukov, the State Property Fund of Ukraine has already received the operational, technological and tax Due Diligence reports from the advisor. By March 15, the SPF will also receive the audit and financial, legal Due Diligence reports, as well as economic appraisal of the minerals reserves from the advisor. Also, the advisor is gathering indicative proposals from the buyers. “We are working for the state and are doing every possible for JSC UMCC to be sold at the auction at maximum market price,” summed up Vitaliy Strukov.
As the preparation for privation of UMCC is taking place according to the schedule, Vitaliy Strukov recommended that the company’s management appoints the specialists, who will be making presentations of production to the buyers. “It is important for us that there is professional management working at the company. There are international companies among potential buyers and availability of a professional team of managers is valuable to them for making the decision on acquisition of the Ukrainian company,” says the advisor.
The auction on the sale of JSC United Mining and Chemical Company is expected to be held in May-June 2020. The company is to become the second asset out of TOP 5 frontrunners of privatization, which will be sold this year, according to the plans of the State Property Fund of Ukraine.