13 June 2014

Group DF urges the State Property Fund of Ukraine to unfreeze privatisation of Sumykhimprom JSC

On 12 June 2014, the State Property Fund of Ukraine took the decision to suspended trading of shares in Sumykhimprom JSC at the Eastern European Stock Exchange.


Group DF has reasons to believe that the pressure applied by one of the trading participants on organisers of the trading and on the seller of the shares had been the real reason behind the suspension of the privatisation. We are convinced that this is a deliberate blocking of privatisation of Sumykhimprom JSC by certain commercial entities and their owners.


Group DF urges Ukrainian government, the State Property Fund of Ukraine and law enforcement authorities to urgently hold an objective investigation to establish the real reasons behind the breakdown of the trading.


The Group proposes that an open, transparent and competitive tender for the sale of minority and majority shares of Sumykhimprom JSC is held in the shortest possible period of time. Group DF is ready to participate in any form of a competitive sale of the shares according to Ukraine’s legislation – from stock exchange trading to an open auction.


Without a powerful and strategic investor, Sumykhimprom is doomed to ceasing its operations which will result in thousands of people losing their jobs, and Ukraine being left without a major complex mineral fertilisers and titanium dioxide producer.