A series of governments has tried to sell Ukrtelecom for over 10 years. The largest sell-off in Ukraine was steel mill Kryvorizhstal, for which ArcelorMittal paid almost $5 billion in 2005.
"We are going to sell 67 percent. Realistically, I think it will stand at $7 billion on the market. ... The government would retain 25 percent plus one share," Transport and Communications Minister Yosip Vinsky told journalists.
The conditions and timing of the tender are not yet known. From 2000 to 2001, the government sold 7.14 percent of Ukrtelecom to the company's workers and foreign investors. Some of that stake is now traded on Ukraine's illiquid stock exchange.
Ukrtelecom, which became the sixth firm to enter Ukraine's mobile telephone market in November, estimated its 2007 revenue at 7.77 billion hryvnas ($1.55 billion) from fixed-line services, below the 7.88 billion hryvnas it earned in 2006.
Operators like Russia's MTS and VimpelCom and Norway's Telenor generally welcome the sale, though with large stakes in Ukraine's fast-growing mobile phone sector, few seem taken by buying the mainly fixed-line firm.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
