Ukraine

Datagroup, the Ukrainian telecom servicing mainly corporate clients, has agreed to sell 25% of its total shares to Horizon Capital for USD 40 million. The new funds are slated by the company to be used in expanding beyond the corporate market. Datagroup will step up efforts to move into the retail sector by acquiring regional fixed network telecoms. The company has previously engaged in the strategy but was forced to slow down due to the economic crisis. Datagroup will work with Horizon Capital to raise up to USD $100 million more over the next several years.

Sweden's Alpcot Agro has reached an agreement with Polish meat packaging giant Polski Koncern Mięsny DUDA S.A., (PKM Duda), to purchase some of PKM Duda's Ukrainian assets. The agreement includes real estate titles, a farm base, machinery and equipment, and a 50,000 tonne silo still being constructed.

Ukrainian agricultural company Agro-Soyuz has a new financial partner after reaching an investment deal with Horizon Capital. Horizon will acquire an Agro-Soyuz stake in return for a $40 million investment via its Emerging Europe Growth Fund II. The deal marks the second investment for the $390 million fund and the first by Horizon since the start of the global financial crisis.

Already the Ukraine's largest investor with more than €4.2 billion committed to 194 projects, the EBRD has agreed to provide a substantial loan to LLC Ergop

OAO Bank Severnaya Kazna, the financially troubled Ural bank, has a new shareholder in Cypress-base Vallaur Limited. Vallaur has acquired a stake of just over 10% through a private transaction with former shareholder Dmitriy Vinogradov.

American private equity firm SigmaBleyzer has made its first investment in the United States after fifteen years dealing exclusively in Eastern Europe and Russia. The acquisition is Dallas based beverage maker Jus-Made, LP, a 54 year-old company which has fallen on hard rimes during the global recession. Jus-Made stands to benefit greatly from the stability and experience SigmaBleyzer brings to the table, already seeing improvement with the addition of a hot-fill line funded by the new capital.

Chinese telecom manufacturer ZTE has announced a joint project with Icon Private Equity to build a new WiMAX system in Ukraine. The 3.5 GHz network, aimed at providing service in the greater Kiev area, will be built through Icon portfolio company Ukraine High Technologies (UHT) and is expected to be complete by the end of the year. UHT acquired the 3.5 GHz WiMAX license back in 2006, but for a variety of reasons has not been ready to begin the project until now.

The financially troubled Donetsk steel mill, located in eastern Ukraine, appears headed for a takeover after the mill's owners failed to repay a bank loan of nearly USD 1 billion. The owners of OOO Estar Holding's Donetsk Electrometallurgical Plant received the loan from A1, an investment firm which is part of Russian investment conglomerate Alfa Group. A1 is alleged to have already appointed three managers to run the mill and could take over within a few days. Neither A1 nor Estar have commented publicly on the matter.

OJSC Galnaftogaz, operator of Ukraine’s OKKO petrol station chain, has reached an investment deal with the European Bank for Reconstruction and Development (EBRD). The deal calls for the bank to acquire a stake in OJSC Galnaftogaz at a cost of up to USD 50 million.

UAProm, the Ukraine based provider of e-commerce and business directory services has recently come under new ownership. Eastern Europe's leading e-commerce group, MIH Allegro Group, has acquired a 51% stake in UAProm for an undisclosed amount to be invested in the company's business development. As part of the deal UAProm retains a 49% stake and has promised to remain part of the business for at least three more years. MIH Allegro Group is owned by South African media company Naspers.