Eurobonds Placement and Restructure. Myronivsky Hliboproduct Group (MHP) is the Ukraine’s leading agro-industrial company. In May 2010 the company issued Eurobonds worth USD 330 million on the London Stock Exchange, and restructured the Eurobond debt taken on by the company in November 2006 worth USD 250 million.
Initial Public Offering (IPO). In May 2008, MHP listed its shares on the London Stock Exchange. Despite unfavorable market conditions, the company was valued at more than USD 371 million through the trading of global depositary receipts (GDR), and the IPO became one of the largest ever by a Ukrainian company. Deloitte conducted an audit of the company and provided advice on taxation issues, as well as financial consultations and other services related to the preparation of an IPO (comfort letters, assistance in preparing certain parts of the prospectus, advice on the impact of tax on the company’s operations).
“We have worked with Deloitte for 7 years. In that time, MHP has not only become the unchallenged leader among agricultural companies in Ukraine, but now has its shares traded on the London Stock Exchange as well. Deloitte has supported us along every step of this journey. I can assure you that Deloitte means professionalism and reliability.”
Victoria Kapelyushnaya, Deputy Chairperson of the Board, Financial Director, and Member of the Audit Committee of OJSC Myronivsky Hliboproduct
Westa, a holding company for the Ukraine’s largest accumulator manufacturer, has been a client of Deloitte since 2007. Westa is the acid and lead accumulator sales leader in the CIS region with a market share of 16% (including 31% in Ukraine, and 12% in Russia). The Group is one of the five largest accumulator manufactures in Europe with annual production capacity reaching 7.6 million nominal batteries.
Initial Public Offering (IPO). In June 2011, Westa conducted an IPO on the Warsaw Stock Exchange. Deloitte conducted an audit of the company and provided services related to the issue of shares.
Issue of Eurobonds. Deloitte’s client Oschadbank successfully listed 5-year Eurobonds worth USD 500 million. The interest rate was 8.25%. Given the current economic situation, this is a record sum for a Ukrainian first-time issuer. The conditions for the transaction had been the most favourable for both state and commercial companies in the last two years. For 4 months, a team from Deloitte was involved in auditing the 9-month financial statements of the company and lent support preparing the prospectus. The bank’s management highly praised the dedicated work of our team. In addition, we received very positive feedback from the managers in charge of the transaction.