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Uzbekistan to auction assets of former Wimm-Bill-Dann subsidiary

Business Materials 20 July 2013 12:07 (UTC +04:00)

Uzbekistan, Tashkent, July 20 / Trend, D. Azizov /

Uzbekistan plans to auction off the assets of Tashkent Siphat Sut (dairy plant) by the end of 2013. The plant was originally established by Wimm-Bill-Dann Tashkent (WBD Tashkent), a former subsidiary of Russian Wimm-Bill-Dann foods, the National Bank for Uzbek Foreign Economic Activity an NBU Investment representative reported to Trend on Friday.

NBU Investments is a wholly-owned subsidiary of the National Bank for Foreign Economic Activity of Uzbekistan (The National Bank FEA of Uzbekistan). The primary objective of NBU Investments is the restoration of bankrupt enterprises, their technical and technological modernization and the assurance of competitiveness in external and internal markets.

According to a company representative, NBU Investments currently manages "Tashkent Siphat Sut", and is to prepare the entity for auction. 100 per cent of the enterprise's assets will be auctioned off to foreign and local investors. Warehouses, manufacturing plants and equipment will be sold.

As reported, in April 2004, "WBD Foods" purchased 76.98 per cent of "Tashkent Sut" for $1,314,000. The Russian company is committed to investing $7.3 million over 5 years in the plant's development.

In 2009, "WBD Tashkent" was inspected by budget and tax authorities, and also by sanitary-epidemiological control, criminal charges were laid against some of the employees.

Employees were accused of violating tax and customs legislation, the rules of trade, production of low-quality products, theft, as well as failure of investment obligations

In December 2009, Tashkent City Economic Court took a decision to close "WBD Tashkent" indefinitely.

In December, 2010 Tashkent City Court on Criminal Cases took the decision to dismiss the criminal case against "WBD Tashkent".

The court considered it necessary to "convert the enterprise into state income" and deem it an "instrument of crime". "WBD Tashkent" was renamed "Tashkent Siphat Sut". Its assets are managed by NBU Investments.

In October 2012, the plant reopened, but until now capacities have decreased by 10 percent.

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