Belarusian Grodno Azot shares up for sale
2013-02-20 10:18:57
A package of shares of the Belarusian company OAO Grodno Azot is supposed to be put up for sale. The information was released by Mr Georgy Kuznetsov, Chairman of the State Property Committee of Belarus, on 19 February, BelTA has learned.
“The decision to sell OAO Grodno Azot shares has not been made yet,” specified the official. “No market appraisal of the company’s shares is available. When the decision to sell is made, appraisal will be performed”.
Georgy Kuznetsov remarked that negotiations had been in progress for more than two years. Investors are invited to modernize the enterprise in order to more than double the output. More than $1 billion is required to achieve it.
Georgy Kuznetsov said he believes that the Russian company EuroChem can become an investor in Grodno Azot. Belarusians are in charge of the Russian company and are not indifferent about the destiny of their native country. If investors arrive, they will be offered a package of shares as large as 25% plus one share with the condition that they will invest money in modernization. Grodno Azot can be privatized only if the enterprise is modernized.
The Chairman of the State Property Committee underlined that Belarus will sell only the enterprises that need modernization. He mentioned the enterprises sold to Belarusian and foreign businessmen in the past. “They made things better than they had been. As a result, the state budget did not have to invest in these public joint-stock companies while the companies started working more effectively,” he stated. At present the investors, who take an interest in privatization in Belarus, are likely to be ready to buy 25% of the shares plus one share in a company. According to the official, there is no big difference between selling 25% or 49%. It is important to keep the controlling interest in a company that has to be sold.
Georgy Kuznetsov also told media that privatizing OAO Minsk Wheel Tractor Plant is possible.
“Enterprises have to work, earn money for the state. Our task is to make them operate at full capacity. If privatization can help us achieve it, we will make these steps,” he said. Georgy Kuznetsov underlined that sometimes proposals of investors take a long time to consider, time is lost and sometimes profits. As an unlucky example he mentioned the situation around the sale of OAO Barhim. In the past companies from Poland and Germany showed an interest in the Belarusian enterprise, but now no proposals are made by the German investor.
Asked about this year’s foreign direct investment target of $2.5 billion, Georgy Kuznetsov said: “If the situation requires a sale, we will decide”. If there is an interest, good offers, then privatization is possible.
The Chairman of the State Property Committee also remarked that the previously stated price of $1 billion for the state-owned share in the Belarusian mobile carrier SOOO MTS still stands.