State Property Fund to Privatize "Ukrbud" for Nearly 263 Million Hryvnias

The State Property Fund announced plans to auction off 100% of the shares of the state joint-stock company "Construction Company “Ukrbud” at an initial starting price of 262,646,000 hryvnias. This strategic divestiture aligns with ongoing efforts to streamline and optimize state-owned assets, as conveyed in a recent statement from the auction commission.

Following compliance with legislative requirements, the outlined conditions for the sale include several crucial stipulations to ensure the continuity and responsibility of the new ownership:

• Preservation of Primary Activities: The buyer must maintain the company’s core operations, foregrounding the significance of its role in civil and industrial construction sectors.
• Financial Responsibilities: There are explicit directives to clear salary backlogs and budget-related debts within a six-month framework. Additionally, the purchaser is tasked with settling overdue liabilities, albeit creditors affected by sanctions are exempt.
• Employee and Social Guarantees: The terms underscore no workforce reductions for at least six months, alongside establishing new collective bargaining agreements after the current one lapses, thereby ensuring protections and stability for employees.
• Regulatory Compliance: Observance of environmental laws and upkeep of protective structures are mandated to safeguard both ecological standards and structural integrity.
• Fiscal Contributions: Under the auction terms, the future owner will contribute dividends to the state budget for the years 2024 to 2025.

The State Property Fund expects to propose the finalized terms and price to the government shortly, paving the way for the formal privatization process to commence.

About State Joint Stock Company “Ukrbud”: "Ukrbud" is integral to Ukraine’s construction sector, specializing in the design and development of both industrial and civil facilities. Beyond construction, the company is committed to the professional development of its workforce through robust training programs. The consolidated enterprise encompasses 10 subsidiaries, ranging from design institutes to educational complexes, thus embodying a comprehensive service provider within the industry’s landscape.

The impending sale of “Ukrbud” marks a significant phase in Ukraine’s broader agenda for economic reform and state-sector modernization, envisioning enhanced managerial efficiencies and enriched service deliveries through privatized engagements.

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