Mon, Feb 27, 2012
Aircraft Manufacturers To Be Offered To Private Investors
The State Privatization Program for 2012-2014 in Ukraine
stipulates the decrease of the share of the state-owned sector in
Ukrainian economy until it reaches 25-30 percent of the GDP.
Ukrainian law on the respective Program has recently gone into
effect and the estimated income from the sale of national companies
to domestic and foreign investors over three years is estimated at
$5 to $7.5 billion (U.S.), according to a news release issued by
World News Ukraine.
Two well-known aircraft producing companies ... Kharkov State
Aircraft Manufacturing Company and aircraft manufacturing company
Antonov ASTC ... are among entities the Ukrainian government will
make available to investors in 2012.
The State Privatization Program for 2012-2014 offers to lower
the price of the enterprises for sale to the demand price level.
The company's stock will also be split as a way to encourage
smaller investors to become shareholders. Ukraine will also
decrease existing limitations for privatization of the state-owned
companies that significantly curb privatization scale. In addition,
5 to 10 percent shares of strategically important companies and
sites will be split in small portions and sold on the national
stock market. This will allow Ukrainians to participate in
privatization process as well as contribute to the development of
Ukrainian stock market.
The process of privatization ... selling off state commercial
and other assets in Ukraine ... started in 1992 following the
collapse of the Soviet Union. The Ukrainian government admits
that the privatization process faced a number of irregularities,
with many companies sold under non-transparent schemes for a price
much lower than their market value. One of the first transparent
privatizations took place in 2005 when India's Mittal Steel bought
Ukraine's Kryvorizhstal, one of the largest steel plants in the
In 2011 Ukraine's largest state-owned telecommunications
operator Ukrtelecom was privatized. 92.79 percent of the
telecommunications giant was sold for approximately USD 1.3
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