The owner and president of DCH Group Oleksandr Yaroslavsky, who holds a controlling stake in Kharkiv Tractor Plant, intends to buy 29% of shares in the plant belonging to Austrian investor Siegfried Wolf, DCH has said in a press release.
“DCH Group of Oleksandr Yaroslavsky officially informs about the start of the process to acquire more shares in Kharkiv Tractor Plant in the amount of 29% of the share capital. This is a stake that recently Austrian investor Siegfried Wolf intended to form to achieve the targeted ownership structure. Under the agreement, conditions of the share acquisition are confidential”, DCH said.
According to Austrian media reports, Wolf decided not to buy the shares due to unclear obstacles seen from Ukrainian governmental officials.
“Over the last few months Yaroslavsky’s DCH Group and me jointly have been trying to complete the acquisition of a stake in Kharkiv Tractor Plant. Our aim was to restore production at Kharkiv Tractor Plant, which had been severely damaged and brought to the verge of bankruptcy by irresponsible actions by the Ukrainian authorities. Recently it became obvious to me that, despite our joint efforts, the unprecedented campaign of pressure launched against Kharkiv Tractor Plant by certain Ukrainian government officials was not going to end. The Ukrainian Antimonopoly Committee has rejected DCH’s application for approval of the acquisition of a controlling stake in the Plant three times. Since antimonopoly approval is a condition precedent for completing the acquisition of my minority stake in Kharkiv Tractor Plant, I can only interpret this as a demonstration of a lack of interest on the part of Ukrainian authorities in attracting best European business practices, and a blunt disregard for the interests of foreign investors. In light of that, I have decided – with regret – not to complete the acquisition of the minority stake in Kharkiv Tractor Plant”, the Austrian media said, citing Wolf.
As reported, Yaroslavsky bought a controlling stake in Kharkiv Tractor Plant in April under a proposal of Wolf. (Interfax/Business World Magazine)