Monday, 22, April, 2024

President Shavkat Mirziyoyev instructed to expedite the privatization of shares and stakes in chemical enterprises owned by the state and the Uzkimyosanoat company. The move is intended to attract direct investment into the industry and improve the efficiency of companies.

The State Assets Management Agency (SAMA) and other interested departments were instructed, with the involvement of international consulting companies, to complete tenders for the sale of assets by October 1, 2023. Agreements with buyers must be signed by this date.

The following assets are being put up for sale:

  • Ferganaazot JSC (99.02% shares) - until December 2022;
  • First Rubber Plant (100% shares) — Q1 2023;
  • Dekhkanabad Potash Plant (100%) — Q2 2023;
  • Kyzylkum Phosphorite Complex (100%) — Q2 2023;
  • Kimyotrans-logistic LLC (100%) — Q2 2023;
  • Hamkor-kimyoservis (100%) — Q2 2023;
  • Kimyotrans (25%) — Q2 2023;
  • Kimyogartaomchi (100%) — Q3 2023;
  • Osiyo techno-project engineering LLC (51%) — Q3 2023;
  • Kimyosavdotaminot (22.98%) — Q3 2023.

The funds received from the sale of state stakes and Uzkimyosanoat in the authorized capital of Ferganaazot will be sent in equal shares to the state budget and the Chemical Industry Fund.

After registration of the purchase and sale of a block of shares in Ferganaazot, the shares in the authorized capital of the enterprise may change.

The distribution of funds received from the sale of the Dekhkanabad potash plant, the First rubber plant, the Kyzylkum phosphorite complex, Kimyotrans-logistic, Hamkor-kimyoservis and Kimyotrans, will be agreed with the Cabinet of Ministers.

Shares in "Kimyogartaomchi", "Osiyo techno-project engineering" and "Kimyosavdota'minot" shall be transferred to the balance of SAMA.

In early August, the SAMA announced that it had received 10 bids for the purchase of 99.02% shares of the Ferganaazot plant. Investors from Europe, Asia and America showed interest in the asset. Of the 10 applicants, half provided a full package of documents for prequalification (RFQ) - its agency announced in early June. During the review of bids, one of them was rejected due to non-compliance with the qualification criteria. The remaining four bidders were admitted to the next stage.

Ferganaazot was founded in 1962. Now it is one of the largest producers of nitrogen fertilizers (up to 2.8 million tons per year), defoliants and cellulose acetates. The enterprise has become one of the most profitable among companies with state participation. Net profit in 2020 amounted to 292.6 billion soums, and in 2021 it earned 348.8 billion soums.

Latest in Economy