6 October 2021

Announcement on the sale of 53,94 % shares in the chartered capital of JSC “Urgench sharob”

In accordance with the Presidential Decree PD-6167 of the Republic of Uzbekistan, dated 11 February 2021, “On measures to further accelerate privatization processes of state assets”, “UzAssets Investment Company” JSC under the State Assets Management Agency of the Republic of Uzbekistan (hereinafter – UzAssets or Seller) announces its intention to sell 53,94% shares in the chartered capital of JSC “Urganch sharob” (hereinafter referred to as Urganch sharob or the Company) through a competitive sale process (hereinafter – the Deal or Transaction).

Following the selection of the best proposals from international consulting companies, KPMG was selected as the UzAssets’ Privatization Consultant (hereinafter Consultant) for the Deal.

Brief information about the Company:

  • Urganch Sharob is located in the historical city of Urgench - the administrative center of the Khorezm region.
  • Total land area of the enterprise is 6,58 ha, including two wine facilities “Parkent” and “Chalish”. Also, the company has agricultural vineyards on 149.3 ha of land for the production of high-quality wines.
  • Production portfolio of the plant includes 52 types of vodka, 14 types of ready-made wineand two types of cognac. The total production volume in 2020 was 274 thousand dal.
  • The Company receives about 35% of raw materials in its own production, the rest is purchased from third parties
  • Particularly popular are the semi-sweet wine "Qora-Ko'z" (Dark eyes), which received a gold medal at the International Competition "The Art of Winemaking 2018" in Tashkent and cognac "Corona", awarded the title of "Best Product 2018" at the International Competition "Wine Art 2018" in Moscow. More information about the Company can be found on the official website: www.urganchsharob.uz/

 Sale Process

The sale is organized as a competitive bidding process open to all interested parties (hereinafter referred to as "Participants"). 

The process will consist of receipt of bids from interested participants and subsequent negotiations with one or more interested buyers. 

Participants will be invited to express their interest in the form of a letter (hereinafter referred to as the "Expression of Interest" or EOI) prepared in English, Russian or Uzbek (at the discretion of the applicant, whereby the letter in Russian or Uzbek must be accompanied by a letter in English) no later than 6:00 p.m. Tashkent time on November 6, 2021, along with supporting documents demonstrating:

    • the ability to finance the Transaction, as well as the operating activities of the Company, at the expense of own and/or borrowed funds;
    • absence of criminal proceedings and investigations with respect to the founders and beneficiaries, as well as the name of the buyer's officials in the international lists of false businessmen and bankrupts, as well as in similar lists of the Republic of Uzbekistan;
    • compliance with the Law of the Republic of Uzbekistan No. 660-II (as amended on January 15, 2019) "On Combating the Legalization of Proceeds of Crime, the Financing of Terrorism and the Financing of Proliferation of Weapons of Mass Destruction".

    Submission of Expressions of interests and the documents listed above enables the Participants to examine in detail the Company's data prepared by KPMG through access to the virtual data room (VDR), after signing the Non-disclosure Agreement (NDA). The deadline for submission of binding proposals shall be communicated by the Consultant to the participants of the process, who have passed the next stage.

The EOI and BOs must be sent to the following email addresses: s.erkinov@uz-assets.uz, dkalazhanov@kpmg.kz,  annakireeva@kpmg.ru, ssandykbayeva@kpmg.kz.

The bidding process is open to all interested Participants.

UzAssets will take all necessary measures for a transparent, professional and successful organization of the process of selling its shares in the Company together with the involved Consultant.

Based on the proposals received, UzAssets, within two weeks, will determine the list of investors admitted to the Negotiations, who will be notified of the selection results personally.

At this stage, the Participants will receive a draft Sales and Purchase Agreement (SPA) and will discuss the terms of the Transaction.

The Bidder, who offered the best combination of price offer and the agreed terms of the SPA during the negotiations, will be declared the winner.

The Seller will invite the winner to conclude the Transaction in accordance with the legislation of the Republic of Uzbekistan on securities.

Additional Terms and Conditions

UzAssets 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 UzAssets, the Company, and KPMG with respect to the sale of the Company, which could be inferred from the publication of this announcement. UzAssets and KPMG reserve the right, in their sole discretion, at any time and in any respect, without assuming joint or several liabilities.

(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 UzAssets, the Company, and KPMG 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.

(v) inform the minimum selling price of the Company;

(vi) for more information or clarifications about the process, please contact us by e-mail, s.erkinov@uz-assets.uz, a.mullajonov@uz-assets.uz, dkalazhanov@kpmg.kz, ssandykbayeva@kpmg.kz, annakireeva@kpmg.ru

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