1. Privatization and M&A
Financial sector
The Russian will acquire Conversbank
The Antimonopoly Committee of Ukraine (AMCU) has granted permission to a Russian citizen to acquire a stake in the capital of Converse Group Ukraine LLC (Kiev region, Ukraine), which ensures that he exceeds 50% of the votes in the issuer’s supreme management body. This is stated in the message of the Antimonopoly Committee of Ukraine dated July 29, 2011.
Brief information: Converse Group Ukraine LLC owns Converse Bank (Kiev, Ukraine), which, in terms of total assets, according to the National Bank of Ukraine (NBU), ranks 89th among 188 banks operating in Ukraine . Conversbank is part of the international financial group Convers Group of Russian businessman Vladimir Antonov.
Pipe industry
Valery Omelchenko acquired 25% of the Oscar Production Association
Wellmind Invest GmbH (Austria) acquired 25% of the capital of Oscar Production Association LLC (Dnepropetrovsk region, Ukraine) from Alef Corporation (Dnepropetrovsk, Ukraine). As a result of the transaction, the corporation’s share in Oscar’s capital decreased to 75%, Ukrainian media reported.
Brief information: The Wellmind Invest GmbH company, according to media reports, is controlled by the deputy of the Donetsk regional council Valery Omelchenko, who is the son-in-law of the Prime Minister of Crimea Vasily Dzharty. LLC “Oscar Production Association” is engaged in the production of pipes and tubes from stainless, alloy steels, titanium and nickel alloys. The association operates on the basis of the property of the state enterprise (SE) Nikopol Pipe Plant (Dnepropetrovsk region, Ukraine).Alef Corporation is a group of trading and manufacturing enterprises of Ukrainian businessman Vadim Ermolaev. The group operates in various industries.
Rail transportation
Vitaly Kirpa will acquire Promsystem
On July 22, 2011, the AMCU granted permission to PJSC Transforwarding Ltd. (Kyiv, Ukraine) to acquire over 50% of the capital of Promsystem LLC (Poltava region, Ukraine).
Brief information: Promsystem LLC specializes in the preparation of tank cars for the transportation of petroleum products and other liquid cargo. According to media reports, the company is controlled by Ukrainian businessman Nikolai Shkvarun. The company Transforwarding Ltd provides freight transportation services by rail. According to media reports, the company is controlled by the son of ex-head of the Ministry of Transport Georgy Kirpa – Vitaly Kirpa.
Food industry
Volleyball club “Favorite” acquired “Lubensky Dairy Plant”
Sports Club Favorite LLC acquired 83.5% of the shares of Lubny Dairy Plant from Lubnymoloko LLC (all Poltava region, Ukraine). As a result of the transaction, the selling party dropped out of the company’s shareholders. This is stated in the plant’s message dated July 21, 2011. The transaction amount is not disclosed.
Brief information: Lubny Milk Plant is engaged in the production of dairy products, confectionery, and semi-finished products under the Harmony brand. Lubnymoloko LLC is controlled by the management of Lubny Dairy Plant, headed by Chairman of the Board Vasily Maksimov .LLC “Sports Club “Favorite” – volleyball club in the city of Lubny, Poltava region. The club is controlled by Ukrainian businessman Vladimir Dorosh.
Agro-industrial complex
Cyprus Vita Genero will acquire 14 agricultural farms in Western Ukraine
The AMCU granted permission to Vita Genero Limited (Cyprus) to acquire shares in the authorized capitals of LLC Levada-2003, LLC Podolsky Host-2004, LLC Doverie, LLC Agropribuzhzhya-2007, LLC Svarog-Dnestr”, LLC “Svarog-Export”, LLC “Trading house “Shepetovsky Sugar”, LLC “Seredinetskoe”, LLC “LotivkaElit” (all Khmelnitsky region, Ukraine), LLC “JSC Mirnoye”, LLC “Svarog-Bukovina” , LLC “Dnestrovskie dew”, LLC “Agrofirma “Orshivska”, LLC “Agrofirma” Kobolchinskaya” (all Chernivtsi region, Ukraine), which ensures an excess of 50% of votes in the highest governing bodies of the issuer. This is stated in the message of the Antimonopoly Committee of Ukraine dated July 29, 2011.
Brief information: Some of these companies are engaged in the cultivation of grain, industrial, fodder and oilseed crops, some of the companies are engaged in dairy cattle breeding, cattle fattening and the production of vermicompost. Most of these companies are part of the agricultural group “Svarog West Group” (Khmelnytsky region), which operates in the Khmelnytsky and Chernivtsi regions. The group cultivates more than 80 thousand hectares of agricultural land and is controlled by Ukrainian businessman Konstantin Grigorishin.
Cyprus Pomarium will acquire 4 agricultural farms in Western Ukraine
The AMCU granted permission to the company “Pomarium capital limited” (Cyprus) to acquisition of shares in the authorized capital of Bukovinsky Garden LLC, Bukovina Agrosvit PE, Agrosad-2005 LLC (all Chernihiv region, Ukraine) and Podolia Vegetable House LLC (Khmelnitsky region, Ukraine), which ensures an excess of 50% of votes in the highest management bodies of the issuer. This is stated in the message of the Antimonopoly Committee of Ukraine dated July 29, 2011.
Brief information: These companies are engaged in growing vegetables and fruits, in particular pears, apples, quinces, tomatoes and cabbage. The companies “Bukovinsky Garden” and “Vegetable House of Podolia” are part of the agricultural group “Svarog West Group”.
Agroliga will acquire an agricultural company in the Kharkov region
The Agroliga group of companies (Kharkov region, Ukraine) on July 26, 2011 signed an agreement to purchase an agricultural company with a land bank of 1.5 thousand hectares in the Kharkov region. This was stated by the chairman of the board of directors of Agroliga, Alexander Berdnik. As a result of the transaction, the company’s land bank will increase to 7 thousand hectares. The name of the company being purchased is not specified.
Brief information: The Agroliga group of companies is engaged in growing grain crops, processing sunflower seeds and dairy farming. The group cultivates more than 5 thousand hectares of land in the Kharkov region, and also has a plant for processing sunflower seeds.
2. IPO
Privatbank is considering an IPO
Bank “PrivatBank” (Dnepropetrovsk, Ukraine) is considering several options for raising capital, in particular, through an IPO. This was reported by the head of the press service of the credit and financial institution, Alla Shorina, with reference to the bank’s management. “We are carefully studying the possibilities of the capital market to attract new external minority investors. Both the option of entering an IPO and attracting a strategic or portfolio investor are being considered,” said A. Shorina. According to media reports, investors may be offered 25% of the bank’s shares.
Brief information: According to the NBU, in terms of total assets, PrivatBank ranks first among 178 banks operating in Ukraine. The bank’s largest shareholders are Ukrainian businessmen Igor Kolomoisky and Gennady Bogolyubov, with shares of more than 40% each.
3. Bankruptcy
Monolitzhilbud declared bankrupt
On May 31, 2011, the Economic Court of the Kyiv Region declared Monolitzhilbud LLC (Kiev Region, Ukraine) bankrupt and opened liquidation proceedings against it.
Brief information: Monolitzhilbud LLC is engaged in the production of ready-mixed concrete grades M100 – M400. The initiator of the bankruptcy of Monolitzhilbud was the leasing company Hypo Alpe-Adria-Leasing (Kyiv, Ukraine). The debt of Monolitzhilbud to the company Hupo Alpe-Adria-Leasing is about $0.1 million.
Pressmash declared bankrupt
On July 15, 2011, the Economic Court of the Odessa Region, by its decision, declared Pressmash OJSC (Odessa, Ukraine) bankrupt and opened a liquidation procedure against it. The total volume of creditors’ claims is about $1 million.Brief information: OJSC Pressmash was a large manufacturer of special hydraulic presses and plastic processing machines. The main clients of Pressmash were Russian companies, which since 2009 have stopped ordering the company’s products. According to media reports, the owner of 50% + 1 share of the enterprise is the Technopark private enterprise, another 24% of the shares belong to International Investment Company In-Group LLC, about 16.26% of the shares belong to Stratagema-Invest LLC (all Odessa, Ukraine ).
Review prepared by Gorshenin Institute (www.institute.gorshenin.ua) – a leading company in Ukraine in the field of information support for M&A transactions, investor relations, corporate conflicts, as well as a leading company in Ukraine in the field of political PR and election campaigns.
