SPF officially reports on sale of 40% stake in Severodonetsk Azot at price that is one third lower than stake face value
The State Property Fund of Ukraine (SPF) has sold a 40% stake in CJSC Severodonetsk Azot for $34.844 million (UAH 277.417 million).
According to a report in the Vidomosti Pryvatyzatsii state privatization newspaper published on Wednesday, the shares were bought by the owner of a 60% stake in the CJSC - Worldwide Chemical LLC (the United States).
The face value of the stake sold by the fund is UAH 422.68 million, which is 52.4% more than the price of the stake paid by the U.S. company.
The fund does not explain the reasons why the stake was sold at a price that is two thirds of the stake's face value.
As reported, referring to sources, an agreement between the SPF and Worldwide Chemical was signed on November 17, 2010. Thus, Worldwide Chemical built up a 100% stake in the company.
CJSC Severodonetsk Azot is among Ukraine's top three chemical producers.
The company was founded early in 2005 after Worldwide Chemical LLC, a daughter company of IBE Trade Corp. (both based in the United States), won a tender to select an investor-founder of the CJSC in October 2004. Prior to that, Severodonetsk Azot had been undergoing bankruptcy procedures since November 2000.
Its charter capital was UAH 1.057 billion. The SPF contributed the property complex of Severodonetsk Azot (except for polyethylene production facilities), while Worldwide Chemical LLC contributed $123.5 million in investment.
The owner of IBE Trade Corp. U.S. citizen of Ukrainian origin Alex Rovt, currently heads the supervisory board of CJSC Severodonetsk Azot.
In 2009, the enterprise saw its net revenues drop by 42.1% compared 2008, to UAH 2.168 billion. Its net loss was UAH 200.4 million, compared to a UAH 22.5 million in net profit posted in 2008.
In the first half of 2010, the enterprise's performance was profitable: its net profit was UAH 9.3 million, and its net revenues grew to UAH 1.532 billion.
Its net worth as of the end of June 2010 was estimated at UAH 1.45 billion, while its assets totalled UAH 1.74 billion.