In accordance with the Presidential Decree PP-4992 of the Republic of Uzbekistan, dated 13 February 2021, “On measures for further reforming and financial recovery of chemical industry enterprises, development of production of chemical products with high added value” and according to the announcement of March 30, 2022, the State Assets Management Agency of the Republic of Uzbekistan (“UzSAMA”) announces the collection of prequalification applications in order to select potential investors (“Applicants”) for participation in the privatization of JSC Ferganaazot (“the Company”) by the sale of 99.02% of its share capital (“the Transaction” or “Sale”).

The number of responses to the previously published announcement of the collection of letters of application (expression of interest) to participate in the Transaction (dated December 10, 2021) has showed a high level of interest from market participants. Consequently, in order to ensure maximum transparency and competition of the Transaction, UzSAMA decided to include a prequalification stage in the process. As part of this stage, all Applicants' prequalification applications will be assessed for their compliance with the announced qualification criteria. Applicants who successfully complete the prequalification process will be eligible to participate in the solicitation of binding proposals. The terms and conditions of this process will be announced to them by direct communication via e-mail

The application process is open to all Applicants and is not limited to Applicants who have previously submitted an expression of interest.

The deadline for submission of prequalification is no later than 18:00 Tashkent time on July 18, 2022. Detailed information regarding the requirements for filling out prequalification application, its submission method, as well as the list of established requirements and criteria for participation in the Transaction are listed in the attached document “Request for Prequalification”.

The leading consultant of UzSAMA on this Transaction is international company Deloitte. The strategic consultant of UzSAMA on this Transaction is the International Finance Corporation (IFC).

Brief information about the Company

JSC Farg’onaazot was established in 1962 and is currently one of the largest producers of mineral nitrogen fertilizers, defoliants and cellulose acetates in Uzbekistan. The Company consists of three main complexes:

• Production of mineral fertilizers: large-capacity aggregate of ammonia AM-76, production of concentrated nitric acid NA-72M and ammonium nitrate AN-72M, production of urea;
• Production of sodium chlorate and magnesium chlorate defoliant;
• Production of cellulose esters and thread acetate.

Moreover, the Company has production facilities to produce nitrogen-phosphorus fertilizer NPhF, liquid fertilizer (KAS), liquid nitrogen and calcium fertilizer, fertilizer for greenhouse “Darmon”, sodium nitrate, sodium bicarbonate, polyethylene bags for packaging of fertilizers and others. The total production capacity of the Company is 2.8 million tons of fertilizers per year.

The financial results of the Company demonstrate positive dynamics. The net profit of the Company increased by 19% in 2021 and amounted to 348.8 billion soums.

Additional Terms and Conditions

UzSAMA reserves the right to change the sequence of the sale process or to refuse to sell to or negotiate with any potential buyer(s) at any time without explanation.

This announcement, or any part of its contents, should not be construed as a form of commitment on the part of UzSAMA, the Company, and Deloitte with respect to the sale of the Company, which could be inferred from the publication of this announcement. UzSAMA reserves the right, in their sole discretion, at any time and in any respect, without assuming joint or several liability, to

(i) make changes to the application deadline;

(ii) follow different procedures with respect to various interested parties, and/or negotiate with one or more potential purchasers within the schedule and procedure provided jointly by UzSAMA, the Company, and Deloitte to the exclusion of any other potential purchaser(s) without prior notice;

(iii) terminate the sales process for any reason; and/or

(iv) terminate any discussions and negotiations with any potential buyer(s) with respect to the Transaction at any time and without giving a reason.

Appendix: Request for Prequalification (DOWNLOAD)