OREANDA-NEWS. March 31, 2010. The State Property Fund of Ukraine has announced an auction sale of Luganskteplovoz <LTPL UK STRONG BUY>. The auction is scheduled for June 15, 2010. The starting price of the offered 76% stake owned by the Government of Ukraine amounts to UAH 400mn. According to the competitive bids rules, eligible to bid are companies that have been operating in the locomotive or train production business or have been supplying spare parts for locomotives or trains for more than three years, or those that have controlled such companies for at least one year.

Millennium Capital: despite the fact that the news was expected, the market response was very brisk: the Company’s share price gained 12.2% during the first half an hour of trading. Everybody is looking forward to the period of uncertainty about the Company coming to an end and to an impending improvement in the Company’s performance due to this fact. As before, Millennium Capital believes that the most likely winner of the auction sale is Russian Transmashholding, the previous owner of the Company, but Millennium Capital does not exclude other eventualities, either.