The State Property Fund adjourns the UMCC auction until December

The scheduled auction failed due to an insufficient number of bidders

The State Property Fund of Ukraine has adjourned the auction to sell the United Mining and Chemical Company JSC (UMCC) until December of the current year approximately, according to the regulator’s press release.

The earlier scheduled auction failed due to an insufficient number of bidders. The State Property Fund received only two bids, one of which fails to meet the requirements of the legislation in force.

According to Taras Yeleyko, Deputy Head of the State Property Fund, decision on rescheduling the auction will be taken by the auction commission at its session that will be held on 29 October.

“The auction may be rescheduled for approximately December this year in accordance with the requirements of the legislation in force. The exact date of the adjourned auction will be decided on by the auction commission on 29 October,” added Mr Yeleyko.

As reported earlier, the State Property Fund scheduled a re-auction to sell UMCC for 29 October. The initial auction had also failed due to an insufficient number of bidders. Then the Fund had qualified only one bidder. In total, the SPF had received three expressions of interest.

In mid-August, Stuhna Limited LLC announced its intent to purchase UMCC. 89% of the Company’s shares are held by Extrade Imports LLP, a company registered in the UK.

In June, the auction commission scheduled an auction to sell UMCC for August 31. The opening price was ₴3.7 billion.

UMCC was founded in August 2014. Then, the Cabinet of Ministers decided to place the assets of Vilnohirsk Mining & Metals Integrated Works and Irshansk Mining & Processing Works under control of UMCC.

The process of privatization was launched in 2019, and the State Property Fund of Ukraine took control of the Company.

UMCC sells its products to over 30 countries all over the world. Its sales markets includes the EU, China, Turkey, the U.S. and African countries.