Makiyivka Steelworks 60% stake on the block

The State Property Fund of Ukraine has announced a tender for the purchase of a 60.86% stake in the Makiyivka Steelworks in Donetsk. The Fund is putting up 862,132,000 of the company’s shares, worth a nominal UAH 0.25 each. The starting price for the stake is UAH 481,793,000 or around US $60 million.

The terms and conditions of the tender require a potential buyer to carry out a restructuring plan approved by the Kyiv Commercial Court in 2004. The buyer will also be obligated to pay off overdue credits worth EUR 136,071,000 that were under Government guarantee, UAH 1.304bn or around US $125 million owed to the Pension Fund, and other outstanding debts.

The SPF intends to hold the tender 75 days after its announcement, that is, around March 4, 2010.

Tags: industry