OREANDA-NEWS. On 27 February 2008 was announced, that the Sun Land Group Corp., a US-based company, announced that it has finalized an agreement with Mostobud, Ukraine's largest bridge builder. As per the accord, Sun Land will provide the financing assistance and project management for a $7 billion bridge construction effort throughout Ukraine in preparation for the Euro 2012 football championships.
The documents were signed by Jose Daniel Mejia, the chairman of Sun Land and Vladimir Prodivus, the chairman of Mostobud. Also in attendance was Yevhen Chervonenko, head of the Ukrainian government agency responsible for Euro-2012 preparations.

Mejia said the agreement would accelerate many bridge projects that need financing assistance for completion. He added that "Sun Land will be able to bring its international credit resources to the Ukrainian government, which will in turn allow Mostobud to move quickly to complete this massive bridge building effort."

In our view, this is very big news for Mostobud as the company has basically secured a monopoly on bridge construction in Ukraine in the near future. Moreover, Mostobud will certainly have to expand to be able to complete all the construction projects planned by the government. Finally, underfinanced projects, such as the Zaporizhia Bridge, that have lagged thus far should see faster completion as company personnel will have to be deployed elsewhere.
The market went wild with joy on this news, driving the stock price up 19% to $462/share during yesterday’s session. This is very close to our previous target price of $478/share, which will clearly have to be revised to account for this POSITIVE development.