The State Assets Management Agency (SAMA) announced the sale of a state-owned stake in the Kokand Biokimyo enterprise. Acceptance of bids for the privatization of 99.7% government stake began in January 2022. The investment company UzAssets attracted Deloitte as a consultant, and Dentons for legal assistance.
A total of four bids were received from local and international investors. Their names were not disclosed. As a result, the state’s 99.7% stake was sold to First Premium Alliance for 277 billion soums (about $24.5 million).
The SAMA believes that the First Premium Alliance proposal "fully meets all the requirements and is able to ensure the sustainable development of the company's activities in the future, and also has the potential to achieve a complete continuity of the high value-added alcohol production chain."
“In addition, the buyer's offer is in the range of indicative prices of the enterprise, calculated by the consultant, and above the estimated value of the enterprise, established by an independent appraiser,” the report says.
It is expected that First Premium Alliance after the completion of the transaction, first of all, will be engaged in the implementation of digital marking in the production of alcohol and alcoholic products, which "will allow to trace the entire supply chain to the end consumer and increase business efficiency."
About the plant
The Kukon biokimyo plant was founded in 1983 to produce fertilizers. Since 1991, he switched to the production of ethyl alcohol and became one of its largest producers in Uzbekistan - 4.02 million decalitres per year.
In addition to alcohol, the company produces 5,360 tons gluten , per year. The profit of the plant in 2021 topped 7.72 billion soums, and for the three quarters of 2022 - 4.9 billion soums.
About the buyer
According to the agency, First Premium Alliance is a company specializing in the wholesale and retail sale of alcoholic beverages.
The summary from the Unified State Register of Enterprises and Organizations (USREO) contains an email address on a domain owned by Premium Uzbekistan - a distillery in Tashkent with a capacity of more than 3 million decaliters per year, Spot drew attention. SAMA also notes that the founders of the company have a plant in the capital.
Today the company works in cooperation with such large retail chains as Legion, Lavini and Duty Free International Airport.
According to the USREO, First Premium Alliance LLC was established in December 2020. The main activity is the wholesale trade of alcoholic beverages. The sole founder is Daniyar Abdulazizovich Kamilov, the son of the former Foreign Minister.
He also owns Delta Global Dynamics (business and management consulting), Progressgortech-Asia (alcoholic beverages retail), Gamma Insurance Biznes (non-life insurance), Metropol Group (business and management consulting).
The latter in June 2021 privatized the former building of the State Security Service on Broadway in Tashkent for 210 billion soums. Abdulaziz Kamilov is now serving as Deputy Secretary of the Security Council under the President and Special Representative of the Head of State for Foreign Policy.