There are no bidders for Belarusian assets

April 22, 2016 18:00

High prices set for questionable from the investors’ point of view assets do not attract buyers from abroad. As a rule, a significant number of auctions are canceled and two out of ten assets put on sale are bought by the only buyer (usually a Belarusian company) for the nominal price.

As a result of the auction held on 22 November the State Property Committee of Belarus sold shares of 2 out of 10 businesses put for sale. In particular, state owned shares of the Cardboard factory “Olkhovka” (76.8% of the statutory capital) has been sold for Br 4.212 billion – nominal price plus 5%. Also, 43.8% of the statutory capital of the JSC “SpecAutoTechnika” has been sold to a state-owned JV “Belavtomazservis”. The latter was the only bidder and agreed to pay the initial price plus 5% for the shares – Br 3.616 billion. Auctions regarding the sale of the state-owned shares of the following companies failed due to the lack of bidders: Tehnolita (Polotsk), Krichevgruzavto, Slonimsky workshop plant, TransMozyr, Skidel Sahartorga, Bobruisk shoe factory, and Minsktelekomstroy, Bobruyskenergomontazh.

High prices set for questionable from the investors’ point of view assets do not attract buyers from abroad. A significant number of auctions are canceled and two out of ten assets put on sale are bought. Buyers are usually local or Russian investors who have already been working in Belarus and seek to expand their businesses.

Auctions held on 24 November by the State Property Committee listed 11 enterprises for sale however shares of only two companies have been sold and replenished the national budget with Br 10.317 billion. State-owned stakes of the OJSC “Beloozersk electromechanical plant” (23.7%) have been bought by a Russian company “TEP-Holding” (Biysk) for Br 6.317 billion, which corresponds to the initial price. Shares of the JSC “Gidroselmash” (96.9%) were sold for Br 4.0 billion (at the initial price of Br 3.952 billion) to Ltd. “Agricultural Technology”. Shares of Slutskplant of material handling equipment, BobruyskATEP, Bobruisk cargo fleet number 1, Bobruysktrans, Borisovgruzavtotrans, Agropromstroymash, PLANT TOOL, Novogrudok freight car fleet and a paper mill “Red Star” have not attracted any investors.

High prices set for questionable from the investors’ point of view assets do not attract buyers from abroad. A significant number of auctions are canceled and two out of ten assets put on sale are bought. Buyers are usually local or Russian investors who have already been working in Belarus and seek to expand their businesses.