In accordance with the relevant privatization programs, the State Assets Management Agency of the Republic of Uzbekistan (“UzSAMA”) announces that it has reached an agreement to sell 100% of the state share (“Transaction”) for 87,0 million USD in the authorized capital of "Poytaxt qurilish va xizmat" LLC which owns "Hyatt Regency Tashkent" hotel (“Hotel”) with one of the largest investment funds in Uzbekistan, "Abu Dhabi Uzbek Investment" JV LLC (“Buyer”).
International consulting company "KPMG Valuation and Consulting" LLC (Consultant), acted as privatization consultant of UzSAMA, the independent appraisal of 100% state share was conducted by the international appraisal company "PricewaterhouseCoopers" LLC.
The Consultant and UzSAMA conducted extensive marketing activities, both locally and internationally, as part of this privatization project, including delivering an investment teaser to various investors via an international regional office network.
As a result, 5 Expressions of Interest were received from America, Asia, Europe and Uzbekistan.
As a result of the selection process of the received proposals, qualified applicants were invited to participate in the next stage of the privatization process: "requesting non-binding offers (NBO)" and they were provided with the materials in the form of information memorandum, financial model and other documents.
As a result, 3 investors participated in the final stage of the Binding Offer Acceptance (BO) and were granted access to the Virtual Data Room (VDR), in which independent reports on complex financial, tax, legal and environmental analysis (due diligence) prepared by the international consultant were presented. Additionally, meetings with the management of the Hotel were organized for all interested applicants and necessary conditions have been created to familiarize the Hotel.
The company "Abu Dhabi Uzbek Investment" JV LLC was selected as the winner of the international tender based on a review of the binding offers received with respect to the qualification requirements, availability of experience in the region, including the hospitality industry, the Transaction closing terms, and proposing the best purchase price exceeding the independent appraised value of the hotel.
The offer of “Abu Dhabi Uzbek Investment” JV LLC is in the upper layer of the indicative price range calculated by the Consultant, and also significantly exceeds the appraised value of the Hotel. At the same time, the investor agrees additionally undertakes to fulfill the investment obligations in the amount of 12 million USD and total redemption payment price will be made by one transaction after the Sale and Purchase Agreement is signed.
It is important to note that the Sale and Purchase Agreement will be signed after the relevant terms have been agreed upon and the winner has been agreed upon with the Hyatt International hotel management network in accordance with the 2013 Agreement between "Poytaxt qurilish va xizmat" LLC and Hyatt International Limited (Europe Africa Middle East).
Background: “Abu Dhabi Uzbek Investment” JV LLC is an investment company with the capital worth of 1 billion USD with the aim invest in projects contributing to the development of bilateral economic cooperation between Uzbekistan and the UAE. The company has successfully invested over 100 million USD in various sectors of economy of Uzbekistan. The portfolio of the investment company has projects worth over 300 million USD with the ultimate goal to attract investments of over 1 billion USD in coming years. The company was established by Uzbek Fund for Reconstruction and Development (UFRD) and Abu Dhabi Fund for Development (ADFD).
The five-star “Hyatt Regency Tashkent” hotel opened in 2016 in the center of Tashkent and became the first Hyatt international brand hotel in Uzbekistan. The total land area is 3.1 hectares, the area of buildings and facilities - 60.1 thousand square meters. The hotel with 8 floors and offers 300 rooms, including 248 standard rooms and 52 junior suites/suites. The hotel has several conference halls of various capacities equipped in accordance with international quality standards, as well as a banquet hall of 850 sq. m., an indoor swimming pool and a SPA-center.
