Ukrtelecom finally sells sub-1% stake

18 Jun 2007

Online news service IntelliNews reports that Ukraine’s State Property Fund (SPF) has succeeded in selling a 0.07% stake in the country’s incumbent fixed line operator Ukrtelecom for USD3.07 million on the local stock market. The sale represents the first small step in a planned part-privatisation of the telco this year, which has suffered several recent delays and setbacks. According to TeleGeography’s GlobalComms database, a planned auction of state-held shares on 22 May attracted bids from three Kyiv-based brokers, but the sale was halted by a last-minute court filing by an obscure plaintiff, and another attempt to sell a 1% stake on 29 May also failed, with the SPF reporting a complete lack of bids. The brokers previously placing bids were thought to have been scared off by uncertainty over the lawsuit blocking the first sale, as well as the apparent politicised nature of the tender, whilst the starting prices for bids were criticised as too high. In early May the SPF valued a 1% stake at USD9.27 million.

Ukraine, Ukrtelecom (incl. TriMob)