OREANDA-NEWS. February 14, 2011. The Ukrainian government’s 92.8% stake in Ukrtelecom (UX: UTLM UK), the incumbent telecom operator in Ukraine, was valued at UAH 10.575 bln by an independent appraisal. The stake was offered at a privatization auction in late December for UAH 10.500 bln, but since there was only one bidder, privatization rules required the appraisal be conducted. Within a few weeks, the State Property Fund must offer the bidder, Austrian firm Epic, the stake at the higher of the two values.

Concorde Capital: we expect finalization of Ukrtelecom’s privatization process by end-April. Since we believe the current management is affiliated with the bidders, we expect a new owner to keep the current team in place and start restructuring right after the privatization. We expect three years are needed for digitalization and restructuring, after which we expect the sale of company to a strategic investor.