13 February 2023 385

The agreement to sell 89,78% block of shares in the authorized capital of Quartz JSC was reached

According to the relevant privatization programs, Investment Company UzAssets JSC under the State Assets Management Agency (UzSAMA) reports about reaching an agreement on sale of 89.78% block of shares in the authorized capital of Quartz JSC (the "Company") with Kuvasoycement JSC (the "Buyer") for 265 billion UZS.

Meanwhile, the full repayment of the credit obligations of the Enterprise by the Buyer in the amount of 47.2 million EUR is provided.

The results of the conducted international process on privatization block of shares of the Company were approved by the relevant decision of the State Commission on conducting tenders for the sale of state property.

Herewith, Investment Company UzAssets JSC (UzAssets) on the basis of competitive selection of an acceptable offer attracted the international consultancy company Deloitte (the "Consultant") as a privatization consultant, and the international law company Dentons provided legal support.

As part of the privatization process, the Consultant and UzAssets conducted extensive marketing activities both locally and internationally, including sending investment teasers (investor sounding) to various foreign investors through the international network of the Consultant.

As a result, 3 Express of Interest applications were received from investors. The received applications were examined to ensure that there were no administrative, arbitration or other legal proceedings that could prohibit the applicants from participating in the privatization process, and that they were not included in the sanctions list of the European Union, the United States and major international financial institutions.

Moreover, as part of the preparation of the Binding Offers, investors qualified for not being on the sanctions lists were given the opportunity to conduct their own due diligence of the Enterprise as well as to review analytical reports on the financial, tax, legal and environmental activities of the Enterprise prepared by the Consultant and posted in the Virtual Data Room (VDR).

The best Binding Offer, the price parameters of which are within the indicative range of values calculated by the Consultant and exceeding the results of the independent evaluation, was provided by Kuvasoycement JSC. Herewith, "UzAssetsexpects that under conditions of intensified competition in the market, the Buyer, being one of the large industrial enterprises of the Republic of Uzbekistan, will be able to ensure sustainable development of Quartz JSC, as well as effectively solve the issues of high debt load of the Company.

It should be noted that at the expense of bank loans in the amount of 47.2 million EUR, in 2018-2021 at Quartz JSC was implemented an investment project for the production of float glass with an annual capacity of 22.2 million square meters. As part of the project, the repayment of attracted credit funds is provided by the end of 2026 and under the terms of the agreement to purchase this block of shares the Buyer undertakes the credit obligations of the Enterprise.

For reference:

Kuvasoycement JSC is an enterprise producing high quality portland cement with mineral supplements, gypsum and limestone mixtures, ribbed asbestos-cement plates and ceramic roof tiles. The company is one of the leading and largest suppliers of quality building materials to the markets of Uzbekistan and Central Asian region. The company has implemented the international standard ISO 9001-2000 that regulates the requirements for quality management system.

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