🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Buyer of Ukraine's Ukrtelekom mulls IPO in 3-5 years

Published 04/19/2011, 10:59 AM
Updated 04/19/2011, 11:04 AM
GC
-
FTNMX552010
-

* EPIC was sole bidder in privatisation auction

* Denies links to Ukrainian tycoons

KIEV, April 19 (Reuters) - Austrian investment firm EPIC, which last month took over Ukraine's largest fixed line operator Ukrtelekom, may place some of its shares on the market in 3-5 years, EPIC said on Tuesday.

EPIC bought a 93 percent stake in Ukrtelekom from the government for $1.3 billion after becoming the only bidder in an auction for the asset.

The sale, which was the biggest privatisation deal under the government of President Viktor Yanukovich, has raised questions as its rules prevented several potential contenders such as Deutsche Telekom from taking part.

Some analysts have said the deal appeared to be designed to benefit some of Yanukovich's industrialist backers such as steel magnate Rinat Akhmetov or chemicals-to-media tycoon Dmytro Firtash.

But EPIC managing partner Peter Goldscheider denied involvement in "any political game" and said his firm was a long-term investor that would not quickly resell the asset to another entity.

"I would be very surprised if we started to think about selling sooner than in three years," he told reporters.

"Our timetable is closer to five years than three years... An initial public offering ... is a much more logical step (than a sale to a strategic investor)."

Ukrtelekom has about 10 million subscribers, commanding an 80 percent market share in fixed line communications. It also has a small mobile business. The company cut its net loss to $32.5 million in 2010 from $58 million a year before. (Reporting by Yuri Kulikov; Writing by Olzhas Auyezov; Editing by Jon Loades-Carter)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.