It is reported that Halnaftohaz a major operator of branded gas station chains in Ukraine has plans to initiate two joint ventures for developing its chain in the southern and eastern regions of Ukraine.

As per report, once this project is implemented, the company will increase the total number of station to 500-600. It is expected that Halnaftohaz will borrow the necessary funds on the market to start the project. The company itself will initially own minority stakes in the joint ventures. The authorized share capital of this stake will include about 20 existing gas station and several land plots. Halnaftohaz is also supposed to acquire all the shares in the joint ventures in the next 5 to 7 years.

According to Millennium Capital analyst “We consider the news as positive for GLNG. According to the company’s estimates, the method of financing will cover the cost of acquiring up to 200 gas stations. It will definitely strengthen the Halnaftohaz market position through geographical extension.”

(Sourced from Millennium Capital)