OREANDA-NEWS. June 21, 2010. The privatization auction of Ukrtelekom , the dominant land-line telecom operator in Ukraine, may be announced in mid-Aug 2010, the State Property Fund (SPF) said June 17. The stake to be offered will constitute 92.8% of the shares outstanding. Prior to that, the company would have to come to terms with the creditors on USD  500mn in loans that can be claimed for immediate repayment once the owner changes.

Millennium Capital deems the news as positive for the company, since the sale to strategic investor will bring in the funds necessary for the modernization of company’s infrastructure. However, the prospects of Ukrtelecom’s privatization are not clear yet and the process may halt in exactly the same way as it had happened in the past. Only the actual announcement of the auction will serve as a perquisite for our improved outlook on the company.