The State Assets Management Agency announced plans to sell government’s stakes of 100% in Poytakht Bank and Uzagroexportbank.

State shares in both banks are being sold on the maximum price basis, and with condition of developing and increasing financial stability. Deloitte is the Poytakht Bank’s privatization consultant and Grant Thornton for Uzagroexportbank. The application process is open to all interested parties.

Winners will be awarded based on the following criteria: at least three years of experience in the banking sector with an ROE of 10%, proven competencies and experience in bank management, the presence of authorized capital and credit rating, and others.

A number of requirements have been established for buyers - separately for local and foreign investors. Requirements for local buyers:

• potential buyer, its participants (shareholders), as well as ultimate beneficial owners should not be persons registered or residing in the state or territory, providing a preferential tax regime and (or) not providing for the disclosure of the identity of the ultimate beneficial owner and the provision of information when conducting financial transactions.
• potential buyer must have an impeccable business reputation and sufficient financial solvency;
• absence of excessive splitting of shareholders - legal entities into levels (more than three levels from the potential buyer to the ultimate beneficial owner) and others.

Requirements for foreign banks (in addition to the above):

• authorized capital and credit rating of a bank must not be lower than the equivalent of EUR 200 million and investment grade (BBB-), respectively.
• the existence of an agreement on the exchange of information between the Central Bank and the banking supervision body of a foreign bank;
• the presence of a written confirmation of the banking supervisory authority of a foreign bank that this bank is under its consolidated supervision, has the right to accept funds for deposits and it has been issued a permit from the banking supervisory authority to create or participate in the authorized capital of a bank, or confirmation that such permission is not required.

Applications for the first stage for both banks will be accepted through June 20.