Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Ukraine Ready to Sell Control In Pipe Plant, Bus Producer

KIEV -- Ukraine's State Property Fund is preparing to sell the government's 76- percent share in a leading producer of oil pipes, with a starting price of 333.75 million hryvnas ($61.2 million), officials said Monday.

The fund said it will formally announce a tender Wednesday for the purchase of the share package in the eastern Khartsyz Pipe Plant and will be accepting bids until June 29. The winner must offer the highest price and a concept for developing the plant, as well as have experience in metallurgy.

The plant is the former Soviet Union's only producer of large-diameter oil pipes with anticorrosion coating. Its 1999 production, according to Interfax, amounted to about 226,000 tons of pipes and represented a 23.7-percent drop from 1998.

The government controls 76 percent of the plant's shares, and the rest belong to various businesses and private investors.

On Wednesday, the property fund is also expected to announce a tender for the purchase of 65.41 percent of shares in the Lviv Bus Plant, with a starting price of close to 12 million hryvnas ($2.2 million). A winner must also pledge to pay the plant's debts of more than 6 million hryvnas ($1.1 million) and to avoid layoffs.

The plant, which can annually produce up to 7,700 buses, produced only 234 in 1999, exporting most of them to Russia. Some 12.65 percent of its shares belong to plant management and workers and the rest to various investors.