OREANDA-NEWS. September 2, 2010. Transmashholding has until September 19 to pay UAH 494 mln for its 76% stake in Luhanskteplovoz (UX: LTPL UK), which subsidiary Bryansk Heavy Machinery won at a reprivatization auction on June 15, State Property Fund head Oleksandr Ryabchenko said at a press conference yesterday. Otherwise, the SPF is planning to dissolve the purchasing agreement and announce a new privatization auction.

Concorde Capital: we think Transmashholding will settle the non-payment issue with the SPF within the allotted time. The issue is that Transmashholding bought the 76% stake in June for less than it paid at the 2007 auction, thus the state could even have to compensate the difference to Transmashholding. However, technically Transmashholding will be able to claim the payment for the 2007 auction back only after the new owner, Transmashholding itself, pays for the stake it purchased in June 2010.