Valuation of the assets and property rights of the State Railway Administration (Ukrzaliznytsia) with the aim of determining the authorized capital of the Ukrzaliznytsia public joint-stock company will be performed in five stages, and the first stage is currently underway, the press service of has announced. The appraiser, the Deloitte & Touche company, has developed a draft valuation methodology, which has been approved by Ukrzaliznytsia and sent to the State Property Fund for approval. The appraiser has received information about the assets and property rights of 49 legal entities that will be merged into a single joint-stock company, as well as information about seven private joint-stock companies, from Ukrzaliznytsia.

In the second stage, the appraiser will prepare reports on the valuation of the assets of the 49 legal entities and valuation of 100% of the shares owned by the state.

In the third stage, the State Property Fund will review the asset valuation report.

In the fourth stage, the appraiser will provide the relevant information to the commission for establishment of the joint-stock company and prepare a consolidated act of valuation of Ukrzaliznytsia’s assets. The appraiser must confirm the accuracy of the data provided.

In the fifth stage, the State Property Fund will review the consolidated property valuation act. If it has any objections, the appraiser will help to address them.

The Ministry of Infrastructure will approve the consolidated property valuation act, as well as consolidated lists, and transfer acts for property and land. The consolidated asset valuation act will determine, among other things, the size of the authorized capital that will be included in the draft charter of the Ukrzaliznytsia public joint-stock company, and the government will approve the charter itself. This will be followed by registration of the Ukrzaliznytsia public joint-stock company.

As CFTS reported, the contract with Deloitte & Touche for valuation of Ukrzaliznytsia’s assets and property rights was signed on 26 December 2014. The company was selected via open competitive bidding.