Ukrtelecom finally becomes a private company
7 February 16:29
The Supreme Court of Ukraine has put an end to the 7-year-long legal dispute over the privatization of Ukrtelecom, rejecting the request of the State Property Fund of Ukraine to terminate the privatization agreement of 2011. This was reported by System Capital Management, which has been the de facto majority shareholder of the company since 2013, "Komersant Ukrainian" reports.
System Capital Management, which acquired a controlling stake in Ukrtelecom in 2013 through the purchase of ESU, claims that it has transformed the once loss-making operator into a modern, profitable enterprise. According to the company, SCM has invested more than $800 million in Ukrtelecom’s development, consistently refusing to pay dividends to reinvest in modernization.
Today, Ukrtelecom has the largest fiber-optic network in Ukraine with a length of 80,000 kilometers, which is equal to two equatorial regions of the Earth. The company has set up its own cybersecurity center (Security Operations Center), which successfully resists enemy cyberattacks during the war.
“We have demonstrated what the approach to responsible investment in Ukraine should be by creating a modern, successful and indispensable company during the war,”
– commented SCM’s Communications Director Natalia Yemchenko.
According to her, the court’s decision prevented a dangerous precedent of canceling privatization on formal grounds. This decision is especially important in times of war when it is critical to maintain the stability of infrastructure companies.
SCM is committed to continuing its responsible management of the company.
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Ukrtelecom
“Ukrtelecom is a Ukrainian telecommunications company and the country’s largest fixed-line operator. The company provides telephone services, Internet access and interactive television. At the beginning of 2021, Ukrtelecom’s Internet access network covered 3322 settlements and more than 2000 territorial communities.
The company’s history began in 1993 with the registration of the Ukrainian telecommunications branch Ukrelectrozvjazok, which was renamed Ukrtelecom the following year. In 2000, after corporatization, the company was transformed into Ukrtelecom OJSC. In 2011, the State Property Fund of Ukraine sold 92.791% of the company’s shares to ESU for UAH 10.5 billion. Since 2013, the company has been part of Rinat Akhmetov‘s SCM Group.
As of 2023, the company provided Internet access to 90% of the number of settlements covered by the network before the full-scale Russian invasion. Ukrtelecom’s total revenue in 2023 was over UAH 5 billion. Almost 260 of the company’s facilities were damaged during the war, with about 50 of them completely destroyed. Total losses from Russian aggression are estimated at UAH 2.8 billion.
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