Ferganaazot, producing mineral nitrogen fertilizers, defoliants and cellulose acetates, will be privatized. The State Assets Management Agency unveiled plan to sell 99.02% stake in Ferganaazot.
Reportedly the company is being privatized in pursuance with the February 13, 2021 presidential decree.
The sales process will reportedly be based on competitive sales open to everyone. The process consists of receiving non-binding and then binding proposals from interested participants and conducting further negotiations with one or more interested bidders.
Deloitte TCF LLP is the agency’s leading advisor on asset transactions, and the International Finance Corporation is also helping to privatize the company.
Ferganaazot was founded in 1962 and today is one of the largest producers of mineral nitrogen fertilizers, defoliants and cellulose acetates in Uzbekistan.
The company has 3 main complexes:
- Mineral fertilizers production: AM-76 large-scale ammonia unit, unconcentrated AK-72M nitric acid and AS-72M ammonium nitrate unit, urea unit;
- Sodium chloride and magnesium chlorate defoliant unit;
- Esters of acetate fiber and cellulose unit.
In addition, there are nitrogen-phosphorus fertilizers AFO, KAS liquid fertilizer, dilute nitrogen-calcium fertilizer, Darmon fertilizers greenhouses, sodium nitrate, sodium bicarbonate, polyethylene bags, polyethylene bags for mineral fertilizers containers and other facilities. The total production capacity of the enterprise is 2.8 million tons of fertilizers per year.
According to the agency, the company's net profit in 2020 topped 292.6 billion soums (220 billion soums in 2019), and in 2021 this figure is expected to grow.
