Daily monitor

Yesterday the Cabinet announced Ukrtelecom’s privatization price of UAH 10.5 bln for the State stake of 92.8%. The telecom giant will be sold on December 28.

Крюковский вагоностроительный завод в ноябре 2010 года поставит Укрзализнице 21 пассажирский вагон. Согласно сообщению компании, эти вагоны имеются на предприятии и были выпущены еще в 2008 году. Предприятие располагает информацией о планах правительства на 2011 год выделить 400 млн грн на приобретение 50 пассажирских вагонов производства Крюковского вагоностроительного завода. Компания улучшила прогноз производства вагонов в 2010 году до 9 000 единиц.

Yesterday the Cabinet announced Ukrtelecom’s privatization price of UAH 10.5 bln for the State stake of 92.8%. The telecom giant will be sold on December 28.

From January-September 2010, Ukrainian automotive companies decreased vehicle production by 9% YoY to 53.5 thsd units. Car production dropped 15% YoY to 47.8 thsd units, while production of trucks grew 2.1 times to 3.7 thsd, buses – 2.4 times YoY to 1.9thsd units. The MoM automobile production increase in September amounted to 24%.

Landkom [LKI LN, HOLD] posted its wheat harvest results of 18.36 thsd tonnes, which is 43% lower than we expected. According to Company’s data, the wheat yield was 3.0 tonnes per ha, which is 4% below our expectations. We expected the Company to gather a harvest from all 10.3 thsd ha, but Landkom harvested only from 6.0 thsd ha. This is the reason for the decline, as the decrease in harvested area is 41% lower than we projected.

Kernel [KER PW, U/R] has signed a preliminary agreement to buy an agricultural company in the Kirovograd region for about USD 1.6 mln, which operates about 2.4 thsd ha. The deal should be completed by January 2011. The transaction will include lease rights of 2.4 thsd (the lease period is up to 7 years) as well as equipment, inventories, and biological assets.

International rating agency Moody's Investors Service changed Ukraine’s rating from “B2 negative” to “B2 stable”.

Kryukivka Carriage [KVBZ UK] has increased train car production 4.1 times YoY to 6923 units. A MoM production decline in September amounted to 15%.

In January-September 2010 Bogdan Corporation, owner of Bogdan Motors [LUAZ UK] has doubled production of buses and trolleybuses YoY to 699 units. Active export policy of the company remains the main production sales increase driver as Bogdan Corporation exports 70% of its products.

Fitch Ratings has assigned a “B” rating (outlook stable) to the planned debut of a Eurobond issue of Avangard [AVGR LI, U/R]. Fitch has also assigned Avangard a national long-term rating of “A+” (ukr). The road show will last from October 11 to 19. The planned volume of the issue is USD 250-300 mln.