Infrastructure Minister Vladyslav Kryklii says Ukraine’s joint-stock railway company Ukrzaliznytsia (UZ) has put its cooperation with Deutsche Bahn and preparations for an initial public offering (IPO) on hold.
“Consultations with Deutsche Bahn will be put on hold,” he said. “Do you remember the amount of the bid? It’s over UAH 80 million ($2.95 million). UZ cannot afford it now.”
“What is more, they won’t be able to come here – we have restrictions on foreigners’ entry. Therefore, we will postpone everything,” he added.
According to him, ensuring the company’s financial stability, safeguarding the interests of its personnel, automating the processes, upgrading rolling stock, and fighting against corruption are UZ’s priorities now. He also forecasts that the company is unlikely to launch an IPO.
“It’s definitely not a good time for a public offering now. We will get a bad assessment – it’s not interesting. An IPO is a viable option. Whether it happens this year – I’m not sure. Much depends on pandemic-related developments,” he added. (UNIAN/Business World Magazine)