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Nobody wants to take part in Odesa Port-Side Plant tender due to high price - Ukraine's SPF

Nobody wants to take part in Odesa Port-Side Plant tender due to high price - Ukraine's SPFNo company has submitted a bid to participate in a tender to sell 99.567% of shares in public joint-stock company Odesa Port-Side Plant, the press service of the State Property Fund (SPF) said late on Monday.

"Today, on July 18, 2016, the term for filing bids to participate in a tender to sell Odesa Port-Side Plant expired. As of 18:00 no bid was submitted. Due to the absence of the bids the fund has to declare a failure of the tender due to the absence of demand," the fund said.

The press service said that since the moment of the publication of the announcement to sell the plant potential investors had shown their interest.

They signed relevant confidential agreements. After studying a package of documents and the situation in Ukraine and around the plant they said that they are not ready to take part in the tender. They gave the main reasons of their decision.

Read also: Seven companies want to buy Odesa Port-Side Plant - Ukraine's SPF Head

The debt to Group DF, lawsuits with Nortima, a restriction to repatriate dividends, the absence of tax benefits and preferences for investors, the price set too high in the light of the above-mentioned problems at the plant and general political and economic risks of the country caused many questions and doubts with investors.

"All risks about the plant and Ukraine have their price, and if we cannot settle some of the problems or risks, they should be taken into account and reflected in the conditions and the sale and purchase agreement. I think that this should be done before the repeated tender jointly with a working group for privatization and involve the group of advisors who prepared the plant for privatization," SPF Head Ihor Bilous said.

He said that the proposals will be presented to the prime minister and Ukraine's Cabinet of Ministers for consideration.
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