The State Property Fund is planning to privatize Ukrtelecom, Ukraine’s large telecommunications company, in 2010, Oleksandr Riabchenko, acting head of the State Property Fund, told.
«We are planning to sell Ukrtelecom this year to gain main receipts to the budget (from privatization),» Riabchenko said. Thus, about 67% of the shares in Ukrtelecom are under privatization, he added.
At present, Ukrtelecom has market capitalization of about UAH 10 billion, according to Riabchenko. The starting price of Ukrtelecom will make nearly UAH 7 billion, according to Riabchenko.
However, privatization will be conducted after the Cabinet of Ministers approves the appropriate decision, he noted.
Riabchenko admitted that about 25% of the shares in Ukrtelecom would remain in the state property.
As Ukrainian News reported, the Cabinet of Ministers in April 2008 approved terms of privatizing 67.79% of the shares in Ukrtelecom with the starting price being UAH 12 billion.
Ukrtelecom, the largest telecommunications company in Ukraine, ended 2009 at losses of UAH 456.426 million with net income being up by 3.39% or UAH 225.202 million to UAH 6,870.931 million, compared with 2008.
Ukrtelecom has a 78.5% share of the fixed-line telephone market in Ukraine and provides services to 9.9 million subscribers.
