100% of shares of OJSC “Sverdlovskavtodor” offered for sale at the second auction
The Auction House of the Russian Federation has announced the second auction for the sale of state block of shares of OJSC “Sverdlovskavtodor”.
The auction is scheduled on 26 October.
The starting price – 1.050 billion rubles (at the first auction the price was 2.45 billion rubles).
Bid increment – 5.0 million RUR.
The price is set as of 1st of April, 2015, taking into account financial and economic indicators of the enterprise, which have noticeably got worse.
Financial status of OJSC “Sverdlovskavtodor” has been extremely unstable during last three years. So during the given period the enterprise for six times has obtained the claims for bankruptcy. The current status of the enterprise is characterized by reduction of scope of works, underutilization of existing capacities, high expenses for maintenance of numerous property complexes, growth of rates on credit, legal expenditures. Revenue of the Company in 2014 was 2.3 billion rubles, which is 30% less than in 2013. According the results of 2014 the Company loss is 2.5 billion rubles.
The enterprise has a great volume of accounts payable. In accordance with the results of 2014 the accounts payable is 1,089 billion rubles, amounts owed to providers and contractors – 556 million rubles. Altogether it is 1.6 billion rubles. The volume of accounts payable is still increasing.
“Problems of the enterprise are the result of inexpert corporate management. We still consider the assets to be highly liquid from the point of view of investments. The enterprise remains, in fact, a monopolist in the market of road infrastructure of Sverdlovsk Region, carries out major orders, including the state ones and owns a large volume of non-core assets – real estate, which, with expert management, can became a source of significant income for future owner. We are sure that it is necessary to involve a large investor, able to suggest an effective strategy of the development of the Company’s main activity, in the growth of the enterprise” (Andrey Stepanenko, General Director of AHRF).
For today the shares of OJSC “Sverdlovskavtodor” – one of the most expensive assets from the list of “Small Privatization” for 2014–2016.
The Company is the largest road operation enterprise in Sverdlovsk Region. It carries out maintenance of all federal motorways, running through the territory of Sverdlovsk Region and of more than 70% of regional and municipal public roads.
The main profit is due to execution of works under the contracts with two major state customers: Federal Road Administration “Ural” and Highway Administration of Sverdlovsk Region.
The Company has 15 branches throughout the region, each of which possesses all production facilities, equipped with everything necessary for carrying out a full complex of main activities.
Besides this, the enterprise owns the unused assets as land plots with objects of real estate located on them, which can be converted for objects of road service due to their location near the main regional highways. Thus, a future investor will have a possibility to compensate a part of the funds, spent for acquisition of the assets.