OREANDA-NEWS. March 14, 2011. On Mar 11, Austrian based investment house EPIC signed off an agreement with the State Property Fund (SPF) regarding the purchase of a 92.79% stake in Ukrtelecom for UAH 10.575bn (USD  1.33bn). EPIC, which deposited UAH 1.05bn when bidding for Ukrtelecom last year, has to pay the remainder UAH 9.53bn by Jun 7, 2011.

We consider the news is POSITIVE for Ukrelecom. The closure of the deal ends the privatization saga stretching for about 13 years. Notwithstanding the uncertainty hovering over EPIC acting as a front cover for a non-disclosed party, we deem that a private investor reportedly with a good government lobby will be able to fix the financials of the company in the next two years.