Ukraine's govt approves conditions for sale of state-owned stake in Sumykhimprom
Ukraine's Cabinet of Ministers has approved the conditions for the sale of the state-owned stake in PJSC Sumykhimprom, amounting to 1.738 billion ordinary registered shares, which constitutes 99.9952% of the company's charter capital, via an electronic auction with a starting price of UAH 1.158 billion.
According to Taras Melnychuk, the Cabinet's representative in the Verkhovna Rada, the decision was made at a government meeting on Tuesday and was announced via his Telegram channel.
Yaroslav Zhelezniak, Deputy Chairman of the Parliamentary Committee on Finance, Tax, and Customs Policy (the Holos parliamentary faction), noted in his Telegram post that the sale conditions include several obligations for the buyer. These obligations include investing at least UAH 150 million in capital expenditures for technical re-equipment and modernization (including energy modernization) of production; settling overdue loan debts, wage arrears, and outstanding payments to the budget and the Pension Fund of Ukraine within six months of acquiring ownership of the stake; and directing dividends to the state budget based on the company's financial performance in 2024 and the period of state ownership until its sale in 2025.
Sumykhimprom is one of Ukraine's largest producers of complex mineral fertilizers, titanium dioxide, sulfuric acid, and other inorganic chemical products. The company is among the top three budget-contributing enterprises in the city of Sumy and the region. It manufactures over 30 brands of NPK fertilizers with varying nutrient ratios tailored for different soil and climatic zones.
For over ten years, the plant was managed by a group of companies linked to Group DF, owned by businessman Dmytro Firtash. In November 2023, the Economic Court of Sumy Region granted the motion of the State Property Fund (SPF) and the Ministry of Justice to close the bankruptcy and restructuring proceedings of Sumykhimprom.
As reported earlier, in December 2024, the SPF's auction commission set the starting price for the 99.9952% state-owned stake in PJSC Sumykhimprom at UAH 1.158 billion for the upcoming auction on the Prozorro platform. The privatization conditions, alongside the price, required government approval.