The State Property Fund has found an investor for the state enterprise "VolynTorf"
The State Property Fund of Ukraine has sold the assets of the state enterprise "VolynTorf" for UAH 212.2 million
When and how did the sale take place?
The SPFU planned a privatization auction for the sale of the state enterprise "VolynTorf" on October 6th, with a starting price of UAH 190.2 million.
Potential participants in the auction had the opportunity to submit their bids until 8:00 PM on October 5th. Anyone, except those prohibited by law, including individuals connected with the aggressor state or subject to sanctions, as well as investments from offshore and companies with non-transparent ownership structures, had the right to participate. To participate, it was necessary to pay a guarantee fee (UAH 38 million) and a registration fee (UAH 1,340).
Only one potential investor submitted a proposal. In accordance with the law, investor has the right to acquire the asset through purchase.
How much does the winner have to pay for "VolynTorf"?
The investor offered UAH 212.2 million for the state enterprise. VAT at a rate of 20% will also be charged on this amount. Therefore, the final amount that the investor has to pay for the asset is UAH 254.7 million. Additionally, the enterprise has debts of approximately UAH 20 million that the new owner must pay.
What other commitments did the winner take on?
The buyer must continue to provide thermal energy services to consumers with whom "VolynTorf" has signed relevant contracts. Additionally, the buyer must pay off salary arrears and tax debts within 6 months and is not allowed to lay off employees during that period.
What does "VolynTorf" do?
"VolynTorf" specializes in the production of peat briquettes. In the first half of 2023, enterprise generated a revenue of UAH 90.4 million, and in the entire year of 2022 – UAH 200 million. During January to June 2023, "VolynTorf" made a net profit of UAH 6.2 million, and for the whole of 2022 – UAH 10.6 million.
As of June 30, 2023, the current creditor debt of "VolynTorf" was UAH 20.2 million, including UAH 8.9 million in payments to the budget and UAH 2.6 million in salary payments.
In total, the object includes 109 units of real estate (production, warehouse, administrative premises, etc.) with a total area of over 16,000 m2. The enterprise employs 302 people,and there are 164 vehicles on balance sheet. The state enterprise also includes a separate unit, "Manevytsky Torf Plant".
"VolynTorf" has special permits to use subsoil resources in the "Zasvittya Sitnelyuk" (for 18 years) and "Soyne" (for 19 years) deposits.
Why did the SPFU put "VolynTorf" up for auction?
Peat is not a strategic fuel for Ukraine's energy sector. Peat's overall share in the country's energy balance is less than one percent, according to State Statistics Service data. Therefore, the SPFU is gradually putting state-owned peat enterprises up for privatization auctions. In total, the sale of 7 state-owned peat mining enterprises is planned.
In early July, the SPFU held an auction for the sale of "RivneTorf" which was offered for UAH 205 million. The sale of the state enterprise "ZhytomyrTorf" will also be announced soon.