Author: Petra Jamrichová
Source: Hospodarske noviny, 4 February 2010, page 13
HEADLINE: Slovak billionaire Pavol Krúpa decided to dominate the Ukrainian construction company.
Slovak financier Pavol Krúpa, who owns the Arca Capital group, purchases again after the period of sales of his assets. This time he is after the Ukrainian state construction enterprise Kharkovmetrostroy.
He wants to buy 50 percent plus one share in this construction company employing 500 people, from the local state fund municipal property, in order to acquire majority. Arca already owns 38 percent shares of Kharkovmetrostroy.
Kharkov, Crimea and Russia
By purchasing the enterprise, which belongs to the largest Ukrainian construction companies, and whose primary concern is building Kharkov situated in the northeast of Ukraine, the Slovak billionaire can earn well.
“Kharkovmetrostroy is one of the strategic enterprises of Ukraine which is linked to budget money. In the upcoming three years 450 millions Ukrainian hrivnas (about 40 million Euros) are approved, which should be used for construction development of this town,” Pavol Krúpa confirmed for HN
He noted that the company owns several interesting objects that can be developed by developers. “Within the structure of this company there are also other plants operating in the construction in Kharkov, Crimea, but also in Russia,” Krúpa added.
A risky step?
Arca Capital is still not certain, whether it acquires majority in Kharkovmetrostroy. According to the Czech blog motejek.com, that came first with the information about the planned conquest of Ukrainian Construction Company by Pavol Krupa, in the fight to obtain Kharkovmetrostroy there are two more candidates.
Kharkov city itself, but also Kharkov Construction Union can take part in the tender. . “We are determined to get the needed package together with our partner – Kharkov city. At this very moment there are ongoing negotiations with Michail M.Dopkin, the Mayor of the Kharkov,” reacted Krúpa to our question, what maximum amount of money they are willing to pay for majority in the company.
According to EN sources the purchase during the economic crisis will cost him substantially less than in the past. Such firms can be currently purchased four or five times cheaper than a few years ago. Nevertheless, Krupa takes risk by this step. “In the era of privatisation in Slovakia, it paid to buy the building companies. For constructions of infrastructure it acquired funds directly from Europe and so it was clear they would build. However, Ukraine is sponsoring the construction itself,” says our source.
