KIEV, Ukraine, December 9, 2016 /PRNewswire/ --
DCH Group with its considerable experience of managing industrial assets (including those of chemical industry) has repeatedly expressed its interest in acquiring the shares of Odessa Port Plant PSC. In this connection it was decided to consider a possibility of participating in the enterprise's privatization tender set by the State Property Fund of Ukraine for October 14, 2016.
(Photo: http://photos.prnewswire.com/prnh/20161208/447064 )
(Photo: http://photos.prnewswire.com/prnh/20161208/447065 )
On submitting an application and signing a confidentiality agreement with SPF and OPP DCH got access to information about the plant's activities including reports of consultants who had prepared the enterprise for its privatization. DCH together with PwC auditors held legal and financial auditing of Odessa Port Plant PSC.
DCH Group highly appreciates the work and efforts undertaken by the State Property Fund of Ukraine in order to prepare Odessa Port Plant PSC for the tender. Yet, while the analytical work was being done, we obtained additional information on financial and economic activities of the enterprise that was not mentioned in the text published in the official bulletin of the State Property Fund, the Privatization Details, No. 87 (1003) of October 31, 2016. This information is of great importance for the investor.
Namely, it was revealed that the actual accounts payable are not less than at $85 mln., their most pessimistic variant might exceed $350 mln. This practically increases the price of purchasing OPP for its prospective buyers to $550 mln. and more in comparison with the price of the enterprise's shares on sale at the moment. Besides, the Antimonopoly Committee of Ukraine has warranted the enterprise's examination; enforcement proceedings were started on September 20, 2016, information on those can be found in the public record of the Ministry of Justice of Ukraine.
To our deep regret the State Property Fund of Ukraine did not afford DCH representatives an opportunity to participate in the face-to-face negotiations on terms and conditions of acquiring OPP shares. As a result, our suggestions concerning controversial issues remained undiscussed, and the issues themselves remained open because their compromise solution was not developed.
Thus, the complete text of our 15 comments was sent to the State Property Fund of Ukraine in writing. Taking into account everything mentioned above, acquiring the shares of Odessa Port Plant PSC with its loss-making activities, a substantial volume of accounts payable and their constant increase, unsettled and vague situation in terms of vital issues of the enterprise's activities entails a high risk to DCH of losing its investment.
For this reason DCH Group has to withdraw from the tender for acquiring the enterprise's block of shares on conditions offered by the State Property Fund of Ukraine. At the same time DCH would like to stress its interest in future acquisition of OPP and its readiness to further cooperate on the issue.
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