The Cabinet of Ministers puts Electrotyazhmash on the privatization list

In view of reorganization of the company (transformation of a state-owned enterprise into a joint-stock company), the Cabinet of Ministers put Plant Electrotyazhmash JSC on the list of large state-owned assets subject to privatization.

The draft ordinance to that effect was adopted by the Government at a meeting on Wednesday, 17 October.

According to the details contained in the explanatory note, the state-owned enterprise Plant Electrotyazhmash was put on the list of large state-owned assets subject to privatization in accordance with the ordinance of the Cabinet of Ministers of 16 January 2019. By its other ordinance of 31 March 2021, the Cabinet of Ministers approved transformation of the enterprise into a joint-stock company. Accordingly, a record on dissolution of legal entity No. 1004801120068009292 was made in the Unified State Register of Legal Entities on 26 August.

It should be noted that in early October, the Cabinet of Ministers decided that it would receive from the State Property Fund 75.224% of shares in Ukrainian Energy Machines JSC (formerly Turboatom JSC) for management, following the completion of the procedure of merging with Electrotyazhmash JSC. At the same time, on 1 December 2021, the regulation on the procedure for inclusion of Ukrainian Energy Machines JSC in the list of large state-owned assets subject to privatization should come into force.

Turboatom’s shareholders, however, failed to approve Electrotyazhmash’s merger at their online extraordinary meeting of shareholders held on 28 September. The judgement of the Commercial Court of Kharkiv Oblast of 21 September 2021 (case No. 922/3795/21) served the basis for that denial.

The judgement prohibited an extraordinary meeting of Turboatom’s shareholders to approve the certificate of ownership and merger of Electrotyazhmash, the merger agreement, explanations on the terms and conditions of the agreement, the conditions for the conversion of shares, and the issue of shares for such Electrotyazhmash’s conversion into the shares in Turboatom.

Earlier, Turboatom announced its intention to approve merger with Electrotyazhmash in September, with expected completion of the merger procedure by mid-November.