UMCC’s public sale for ₴3.7 billion is scheduled for 31 August

The auction commission for United Mining and Chemical Company JSC (UMCC) scheduled the auction for 31 August 2021 with the opening price of ₴3.7 billion, according to a statement posted by the Head of the State Property Fund (SPF), Dmytro Sennychenko, on his Facebook page.

According to the post, the opening price was set by the privatization advisor based on the results of a comprehensive audit and a full valuation of the company’s plant and equipment.

“A wide range of investors, including a few foreign ones, have submitted their preliminary expression of interest in the asset. We are expecting high competition and a market price of sale at a transparent auction,” said the Head of the SPF.

UMCC started its operations in 2014 when the government of Ukraine transferred the management of Vilnohirsk Mining & Metals Integrated Works and Irshansk Mining & Processing Works to it. In October 2019, the government launched the process of privatization of the company by transferring it into SPF’s ownership.

The UMCC privatization auction was expected to take place in March 2020, but in late March, SPF suspended sales of large assets subject to privatization, pending stabilization of the world markets.

In late February 2021, the Fund presented a new acting CEO of UMCC, Mykhailo Makarov. The new management was charged with conducting an audit of the company and preparing it for privatization.

In April 2021, SPF set an opening price of UMCC in the amount of ₴3.7 billion. The opening price was estimated based on the results of a comprehensive audit and a full valuation of the company’s plant and equipment.

UMCC produces titanium raw material. It comprises two branches: Vilnohirsk Mining & Metals Integrated Works and Irshansk Mining & Processing Works.

In Q1 2021, UMCC’s net profit dropped by 41.3% to ₴144.058 million compared to Q1 2020. Net sales revenues over the quarter was ₴1.186 billion, which is 21.3% more than in the same period of 2020. Retained earnings at the end of March were ₴167.398 million.