Big sale: how much Ukrbud and Sumykhimprom can sell for
25 March 14:35
The government has approved the price and conditions for the privatization of Ukrbud and Sumykhimprom and determined that the stake in the State Joint Stock Company Construction Company Ukrbud will be put up for privatization with a starting price of UAH 262,646,000, and the starting price of the stake in the public joint stock company Sumykhimprom will be UAH 1,158,050,202. This was reported by the Government portal, Komersant ukrainskyi informs.
Both assets are included in the list of large-scale privatization. They will be sold through an electronic auction in the Prozorro.Sale system.
According to the approved terms, the new owners of Ukrbud and Sumykhimprom stakes must:
– maintain the profile of the companies’ operations;
– pay off wage and budget arrears within 6 months;
– eliminate the debt of Sumykhimprom to the Pension Fund of Ukraine;
– pay off overdue accounts payable;
– guarantee the observance of employees’ labor rights and prevent their dismissal within the first six months;
– pay dividends to the state budget based on the results of operations in 2024 and until the sale in 2025.
In addition, according to the privatization terms approved by the Government, the new owner of Sumykhimprom, for example, will be obliged to invest at least UAH 150 million in modernization and technical re-equipment of the enterprise.
What is known about the companies put up for sale
“Ukrbud Construction Company is engaged in the design of industrial and civilian facilities, performs construction and installation work, and trains and retrains workers for the needs of the construction industry. The company includes 10 subsidiaries, including design institutes and training centers.
“Sumykhimprom is a Ukrainian chemicals company that has been operating since 1953. Its main products include mineral fertilizers, titanium dioxide, and inorganic chemicals. The company’s products supply the agricultural sector with fertilizers and are also used in many industries.
How successful are the sales of enterprises in Ukraine?
In 2024, privatization online auctions in the state electronic trading system Prozorro.Sale brought the organizers almost UAH 10.5 billion in 2024.
According to the Ministry of Economy, almost UAH 6.5 billion of revenue was generated by large-scale privatization auctions and more than UAH 4 billion by small-scale privatization auctions. These funds were transferred to the state and local budgets as a result of almost a thousand auctions.
The value of assets at auctions in 2024 increased on average by more than 1.5 times. And the proceeds from the privatization of state property in 2024 exceeded the planned 2.5 times.
Last year, the sale of state-owned property replenished the state budget by UAH 9.6 billion, and the privatization of municipal property brought almost UAH 865.2 million to local budgets.
The state and local budgets can be replenished by more than UAH 2.3 billion as a result of more than 140 auctions in 2024, which are currently at the stage of concluding agreements.
How the auctions were held at Prozorro.Sale
the organizers sold 942 objects at English auctions at a higher price, while 52 more auctions were held at a lower price.
On average, more than 3 bidders competed for state and municipal facilities last year. The most active bidders were competing for the property complex of the State Institute of Labor and Socio-Economic Research in Kharkiv. 34 bidders raised the price of the property by almost 72 times. This is the first privatized property in Kharkiv since the beginning of the full-scale invasion.
Which sales were the most profitable
The most expensive privatization lot in 2024 was the object of large-scale privatization – the United Mining and Chemical Company. The winner paid almost UAH 3.9 billion for it.
Among the small-scale privatization objects, the highest final price was for the Kozatsky Hotel in Kyiv – UAH 400 million.
The most expensive municipal facility at the 2024 auction was non-residential premises in the building where Kyivska Perepichka is located. As a result of the auction, the capital’s budget received more than UAH 150 million.
