Electronmash privatization auction ends with UAH 970 million

Today, November 12, an online auction for the privatization of the SE “Electronmash” took place. The auction was held in the Prozorro.Sale system, and everyone could watch the transparent course of events due to a live broadcast organized by the State Property Fund of Ukraine. 

“I constantly emphasize that such cases are not isolated. In two years, the State Property Fund has held thousands of auctions worth over UAH 5.5 billion. And the main thing is that thanks to privatization, facilities all over the country are coming to life,” said Dmytro Sennychenko, Chairman of the State Property Fund.

22 participants competed for ownership of the asset, each of which could raise rates during the bidding for three rounds. During the online auction, the initial price of the Electronmash plant increased in 14.5 times from UAH 66.7 million to UAH 970 million.

According to Dmytro Sennychenko, Chairman of the State Property Fund of Ukraine, the delay in privatization and attempts to "clean" each facility - to make it efficient, to deal with debts and courts, will lead to the final destruction of assets.

“Like Electronmash, there are many such facilities, and this is not the worst case. If we wait to privatize, maybe there will be nothing. To relieve the state of the burden, all non-core assets should be privatized at transparent auctions and businesses allowed to do business,” said Dmytro Sennychenko.

This price increase was the result of transparent and competitive bidding. Each potential investor had the opportunity to get acquainted with all the information about the asset on the website privatization.gov.ua created by us and to decide to participate in the auction. Prior to the start of the bidding, no one knew about the number of bidders and could not identify them until the end of the bidding, which allows for equal opportunities for all bidders and prevents any outside influence.

The Chairman of the State Property Fund emphasized that the state should be a fair judge and monitor compliance with the law in order for Ukraine's economy to develop and be able to attract large-scale investments.

It will be recalled that Electronmash was one of the most powerful enterprises for the manufacture of electronic computers in the USSR and today is a promising asset in the capital of Ukraine. The object (with buildings and structures of 107 thousand sq.m.)  is located on a land plot with a the total area 13.76 ha.