Odessa Puts Geological Firm Up for Sale at $34 Million — New Owner Will Inherits Its Debts.

Privatization Auction in Odessa

According to Novyny.live: The Ukrainian city of Odessa has announced a privatization auction for the state-owned enterprise 'Prychornomorske State Regional Geological Enterprise.' Scheduled for May 29, 2023, the starting bid exceeds 34.3 million hryvnias (excluding VAT). This auction is part of Ukraine's broader effort to streamline state assets and attract private investment. Potential buyers will have the chance to acquire 43 real estate properties totaling over 7,500 square meters.

Lot Composition and Enterprise Assets

The lot includes four land plots covering more than 4 hectares. Additionally, the new owner will receive 30 vehicles and specialized equipment, such as:

• drilling rigs
• cargo platforms
• minibuses
• semi-trailers
• mobile homes

It is worth noting that the enterprise's accounts payable exceed 23 million hryvnias, a factor that potential investors should carefully consider.

Among the enterprise's assets are also two vessels currently in a sunken state. The new owner will be required to settle the debts within six months of the purchase. The lot further includes four watercraft, comprising three research vessels and one transport pontoon. The enterprise's production bases are located in Odessa, Bilhorod-Dnistrovskyi, and Burlacha Balka.

The auction for 'Prychornomorske State Regional Geological Enterprise' marks a significant step in the privatization of state assets, offering investors a chance to bring new resources to revitalize the business.

The privatization of 'Prychornomorske State Regional Geological Enterprise' is part of Ukraine's overall strategy to optimize state holdings and draw in investment.

This move could not only help restore the enterprise but also boost regional development, given its substantial assets and technical equipment. However, the company's outstanding debts and the condition of some assets may affect investor interest, underscoring the need for a thorough risk and opportunity analysis before participating in the auction.