The Government has approved an advisor for the privatization of the Bilshovyk Plant

At the meeting on December 16, 2020, the Cabinet of Ministers of Ukraine has approved the resolution “On the appointment of an advisor for the provision of services for the preparation for privatization and sale of shares of the joint-stock company “First Kyiv Machine-Building Plant” in amount of 100 percent of the authorized capital of a company and sources of payment for their services”.

This resolution defines KPMG-Ukraine LLC as an advisor in preparation for privatization and sale of shares of the joint-stock company “First Kyiv Machine-Building Plant” in amount of 100 percent of the authorized capital of a company and sources of payment for their services.

This decision is aimed at preparing for the privatization of state stake in the joint-stock company and its further privatization in accordance with international practices on involving competitive investors interested in sustainable development of this asset.

Tasks list for the advisor is determined by Article 19 of the Law of Ukraine “On privatization of State and Communal Property” and includes the following actions:

-          collection of information and analysis of economic, technical and financial indicators of the enterprise;

-          bringing the main indicators of the company’s financial statements in accordance with accounting standards;

-          provision of audit;

-          preparation of a financial model and determination of investment attractiveness of the company, possible ways of its improvement, ways of restructuring of accounts payable, recommendations on the establishment of basic prices and tariffs for products and services, marketing policy, and other measures;

-          determination of the starting price;

-          preparation of an information package on the privatization object for potential investors;

-          preparation of company documentation in accordance with the requirements of the legislation on the protection of economic competition;

-          search for potential investors.

The list of additional tasks of an advisor, determined on the basis of the Procedure for Engaging Advisers in the Process of Privatization of State Property Objects, contains:

-          conducting a SWOT analysis of the object, including assessment of competitive positionsof an object in Ukraine;

-          development of comprehensive measures for anti-crisis management of problem debts of the Object;

-          conduction of Due Diligence, particularly:

- General Due Diligence;

- Financial Due Diligence;

- Tax Due Diligence;

- Legal Due Diligence;

- Operational Due Diligence;

- Technological due diligence;

-          organize the virtual data room and providing access to potential buyers;

-          preparation of object presentation;

-          preparation of marketing information on the market where the privatization object operates for potential buyers;

-          providing recommendations on the terms of the auction, in accordance with Article 26 of the Law of Ukraine “On the Privatization of State and Communal Property”;

-          support of the auction.