Region’s government puts up for sale major Chukotka quota holder

As part of the state property privatization program, on August 9, 2021, Chukotka government plans to sell 100% of the shares of its JSC "Chukotrybpromkhoz", the key enterprise of the Chukotka fishing industry, reports Megafishnet.com.

According to Regnum, the auction starts with an initial price of 2.5 billion rubles (ca. $35 million). This is reported in the documentation posted on the website of the "Russian Auction House" which conducts auctions on behalf of the Department of Finance, Economy and Property Relations of the region. The starting price covers the lot of 23,244 ordinary registered shares to be sold with an increase step of 125 million rubles and 0.5 billion rubles as a deposit.

It is known from the documentation that the system-forming enterprise owns quotas for catching a number of biological resources with a total value of 2.16 billion rubles. The quotas are valid until 2033.

For 2020, the revenue of the company owned by the regional government was 904.9 million rubles, with a net profit of 177.619 million rubles in 2020 and 453.737 million rubles in 2019. In the explanation to the financial documentation of the company, it is noted that in 2020, the JSC was reorganized and JSC "Chukotka Salmon" was incorporated as a separate legal entity.

Chukotrybpromkhoz was registered in 2006 with an authorized capital of 23.244 million rubles. The interim dividends paid in 2019 amounted to more than 200 million rubles.

Applications for participation in the auction shall end on July 30. The decision on the privatization of the asset by the government of Chukotka was made in March 2021.