SPF offers starting price of UAH 1.158 bln for Sumykhimprom at privatization auction

The auction commission for the sale of the state-owned 99.9952% stake in Sumykhimprom has set its starting price at the future ProZorro auction at UAH 1.158 billion and the terms of privatization, which, together with the price, are subject to government approval.

"Preservation of the enterprise's activities. Investments in development: at least UAH 150 million for modernization and energy modernization. Repayment of significant debts: salaries, taxes, debt to the Pension Fund and overdue accounts payable (except for debt to sanctioned persons)," the State Property Fund listed the main conditions on its website.

In addition, the buyer will have to provide social guarantees for employees and not fire them for at least six months.

Sumykhimprom is one of the largest domestic enterprises producing complex mineral fertilizers, titanium dioxide, sulfuric acid and other types of inorganic chemistry. The company is one of the three budget-forming enterprises in Sumy and the region and produces more than 30 brands of NPK fertilizers with different ratios of nutrients for different soil and climatic zones.

The plant was managed for more than 10 years by a group of companies associated with Group DF of businessman Dmytro Firtash. In November 2023, the Economic Court of Sumy region granted the petition of the State Property Fund and the Ministry of Justice and closed the proceedings on the bankruptcy and rehabilitation of Sumykhimprom.

According to YouControl, Sumykhimprom's revenue fell by 48.8% in the first 9 months of 2024, to UAH 315.9 million, while net loss increased by 36.9%, to UAH 450 million.