In the "Continuum" group, controlled by People's Deputy Ihor Yeremeyev, consolidation of assets has begun for an IPO. "We need to make the company more transparent and bring it to the external market - to an IPO," Ihor Yeremeyev told "DELO". In the consolidation process that has begun, the company "Western Oil Group" has already been re-registered by the owner of 60% of "Trading House "Continuum-Galychyna". If we consider that both companies are controlled by Ihor Yeremeyev, it is not difficult to assume that the regrouping of assets does not change the real owners. A source close to the "Continuum" group reported that the sum of the transaction is symbolic - "a little more than $2 thousand." The Antimonopoly Committee has already granted permission for this operation. The press service of the company "Western Oil Group" does not speak about an IPO, but believes that the operation was carried out in order to increase the efficiency of asset management and increase the company's value."

The owner of the controlling stake in "Continuum," Ihor Yeremeyev, cannot yet name the exact timing of the IPO and the location of the offering: "I cannot say exactly when this will happen, but the sooner the better. But I am confident that this (preparation for an IPO - "DELO") will make the company more transparent and more open. Do not doubt that this fits into the overall concept of the group."

Ihor Yeremeyev controls the "Galychyna" refinery, owns the WOG gas station network, through which he sells petroleum products of the "Galychyna" refinery. Yeremeyev's empire also includes "Lutskkondyter," Lviv City Dairy Plant, "Kovelmoloko," and the Chernivtsi confectionery factory "Bukovynka."

Last year, the Antimonopoly Committee permitted LLC "Continuum-Trust-Company" (a securities trader that is also part of the "Continuum" group of enterprises) to acquire more than 50% of the shares of CJSC "Zhytomyrmolokoprodukt." (CJSC "Zhytomyrmolokoprodukt" was created through the contribution to the charter fund of this enterprise of shares of OJSC "Ovruchsky Dairy-Canning Combine" and a package of shares of OJSC "Zhytomyrmoloko").

Experts are confident that in 2006 the company will not be able to conduct an IPO.

"The main problem of "Continuum" is the lack of consolidation of all assets in a single legal entity. And, secondly, they still do not have an international audit," says a manager of a "Big Four" company. According to Kateryna Malofyeyeva, an analyst at "Renaissance Capital," in order to conduct an IPO, for example, on the London Stock Exchange, a company must provide consolidated financial statements prepared according to international standards for at least three years. In addition, these statements must undergo an independent audit. "However, the company can prepare a placement of its shares on an alternative market, where the disclosure requirements are much softer," said Kateryna Malofyeyeva.

At the same time, Ihor Yeremeyev could not answer whether the Continuum group would enter alternative markets to raise share capital.

LLC "Trading House "Continuum-Galychyna" began its activity on the oil market in February 2004. The company leased gas stations from JV "Western Oil Group" and operates under the WOG trademark, according to a license agreement. The trading house carries out small-wholesale and retail trade of petroleum products through a network numbering 78 gas stations. In total, 232 gas stations operate under the WOG trademark in 16 regions of Ukraine.

By the end of January this year, the company will build and commission 10 gas stations; the construction plans for the end of this year include 60 gas stations.

JV "Western Oil Group" (a joint Ukrainian-British enterprise) was founded in September 2000 and is the owner of the WOG trademark. More than 97% of the shares of "Western Oil Group" belong to Stepan Ivakhiv, co-owner of the "Continuum" group.

Printed in the newspaper "DELO" No. 61 of January 23, 2006.

From "Lutsk Investment."

Initial public offering (IPO) is the first open sale of shares by a company. This financial instrument provides an opportunity for shareholders to sell to the general public all or part of their shares at a price higher than they paid at the time of acquiring these shares, before the company became public.

Read also:

"Western Oil Group" received permission from the Antimonopoly Committee of Ukraine to acquire 60% of the charter fund of "TD "Continuum-Galychyna"