The State Assets Management Agency (the "Agency" or the "Seller") announces its intention to sell the state share of 50.0% in the authorized capital of JV "UZ-DONGZHU PAINT COMPANY" LLC (the "Enterprise" or the "Asset") through a public invitation to negotiations (the "Transaction") in accordance with the relevant privatization programs.
The consortium of the consulting company "Rezolut" and the law firm "Dentons Tashkent" acts as the consultant of the Agency on the Transaction.
Brief information about the Enterprise
The Enterprise was established in 1995 in accordance with the relevant decree of the Cabinet of Ministers of the Republic of Uzbekistan and has been producing automotive paints and sealants since 1999.
Annual production capacity of the Enterprise is 7,5 thousand tons of automotive paints and varnishes (40 sorts), 4 thousand tons of construction and industrial paints and varnishes (20 sorts) and 240 thousand tons of rubber sealants.
The main production area of the enterprise is located in Andijan city on the area of 4.8 hectares; there are also 3 commercial stores in the trade markets of Andijan region, an auxiliary livestock farm, a land plot of 25.4 hectares for growing agricultural crops in Andijan region, a park of 2.0 hectares in Khanabad city of Andijan region, properties in Yunusabad district of Tashkent city, 2 recreation facilities in Bostanlyk district of Tashkent region.
The company provides consumers with high quality products in the range of 80 types through 22 official distribution points. There are about 300 qualified workers in the company.
Process of Transaction
The sales process will be organized as a competitive bidding process open to all interested parties (the "Applicants").
The process consists of initially receiving the Expression of Interest Application from interested Applicants, then accepting non-binding offers (NBOs) and then binding offers (BOs), and subsequent negotiations with one or more interested Applicants.
Applicants are currently invited to express their interest in the form of an application ("Expression of Interest") including the following information:
- A copy of the certificate of state registration;
- Consolidated audited financial statements for the last 2 years;
- Information on all shareholders/participants (and their ownership shares) and beneficiaries.
The Expression of Interest may be prepared in Uzbek, Russian or English, at the discretion of the Applicant.
Applicants will be personally notified of the selection process results and its subsequent stages, based on the results of the review of Applications and attached documents for compliance with the following criteria:
- Confirmation of the absence of criminal proceedings and/or investigations with respect to the shareholders/participants and final beneficiaries, as well as the name of the Buyer's officials in the international lists of fictitious entrepreneurs and bankrupts, as well as in the similar lists of the Republic of Uzbekistan;
- Information about absence of the Applicant in the lists of companies against which sanctions are applied by the governments of the USA, EU and CIS countries;
- Confirmation of compliance with Law of the Republic of Uzbekistan No. 660-11 (as amended on January 15, 2019) "On Counteraction of Legalization of Proceeds of Crime, Financing of Terrorism and Financing Weapons of Mass Destruction Proliferation".
In order to confirm future participation in the privatization process, applicants who have successfully passed the Expression of Interest stage are invited to sign a Non-Disclosure Agreement (NDA), then will be granted access to the Virtual Data Room (VDR), which provides them with the Information Memorandum prepared by an international consultant, that contains information necessary to prepare indicative non-binding offers (NBO) to purchase the Asset.
The deadline for submission of Expressions of Interest is no later than 18:00 (Tashkent time) on November 10, 2022.
Applications are to be sent to the following email addresses: m.eshmirzaev@rezolut.uz, and info@rezolut.uz.
The process of Application submission is open for all Applicants.
DISCLAIMER
The State Assets Agency reserves the right to change the sequence of the privatization process or refuse to sell to any potential buyer(s) or negotiate with them at any time without explanation.
This announcement, or any part of its contents, should not be taken as a form of obligation on the part of the Agency, the Enterprise and Rezolut with respect to the sale of shares in the Enterprise, as might be inferred from the publication of this announcement. The Agency reserves the right, in its sole discretion, at any time and in any respect, without assuming joint or individual liability:
(i) Change the deadline for submission of applications;
(ii) Stop the sale process for any reason; and/or
(iii) Stop all discussions and negotiations with any potential buyer(s) in relation to the Transaction at any time and without explanation.
