Three investors competed for the state-owned enterprise in Zhytomyr Region
The State Property Fund of Ukraine conducted an online privatisation auction for the unified property complex of SE Chervone Food Products Plant in Zhytomyr Region. Three bidders competed for the asset. The winning bid reached UAH 31,001,000, up from the starting price of UAH 3,406,273. This is reported by the portal PromPolitInform, citing information from the State Property Fund of Ukraine.
The final offer exceeded the starting price by 9.1 times. Including value-added tax of UAH 6,200,200, the winner must pay a total of UAH 37,201,200 into the state budget.
The state-owned enterprise has been inactive for the past seven years. The auction was conducted via the Prozorro.Sale electronic system as part of Ukraine’s state asset privatisation program.
Property Complex Assets
The unified property complex includes 50 real estate items, such as buildings and structures, alongside 37 vehicles and other movable assets. Additionally, the enterprise holds permanent land use rights for two plots totaling over 54 hectares.
An unfinished food concentrate workshop is located on the site. However, the complex also contains non-privatisable property, specifically a radiation shelter.
Deal Conditions and Obligations
Winning the auction does not result in an immediate transfer of ownership rights. The winner has 20 working days from the date the auction protocol is issued to pay the full amount.
The purchase agreement will be signed only after full payment is made, with property transfer finalized upon signing the acceptance act. Furthermore, the buyer is required to settle the plant’s wage arrears and tax debts.
Illustrative photo: Rbrechko / CC BY-SA 4.0
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