Auction worth UAH 4.49 billion failed – no bidders.
The auction scheduled for November 25 to privatize 99.56% of the shares of Odesa Port Plant (OPP) failed: not a single potential buyer registered. This was reported by the Ministry of Economy of Ukraine.
The starting price was UAH 4.488 billion, but there was no interest in the privatization project.
🔻 Why it failed
OPP has serious financial problems:
- over UAH 184 million in wage arrears;
- over UAH 182 million in budget debt;
- total overdue accounts payable – approximately UAH 16.6 billion;
- the company requires large-scale investment and modernization.
Furthermore, the privatization terms stipulated the following obligations for the future investor:
- invest at least UAH 500 million;
- fully pay off wage and budget arrears within one year;
- maintain the plant’s core business for at least five years.
🔻 What’s next
The state is preparing a repeat auction and is also considering a mechanism for gradually reducing the starting price to increase the chances of a sale.Держава готує повторний аукціон, а також розглядає механізм поетапного зниження стартової вартості, щоб збільшити шанси на продаж.