German company intends to become shareholder of Uzbek cement plant
Tashkent, Uzbekistan, Nov. 19
By Demir Azizov- Trend:
The Uzstroymaterialy JSC, which unites enterprises of the construction industry of Uzbekistan and the German Heidelberg Cement have started the active phase of negotiations for the acquisition of 35.9 percent of shares of the Kyzylkumcement JSC, the largest cement plant in the country, the Uzbek company told Trend Nov.19.
In early November, the parties signed a memorandum of intent to acquire shares of the cement plant, according to the joint-stock company.
"Currently, we define all the conditions for the strategic investor to enter the number of shareholders of the JSC, namely the cost of the proposed share, strategies for action of the German company as a shareholder, including its participation in the modernization of production, personnel training," a spokesman said.
A company representative said that the work on the sale of 35.9 percent of shares of the company to a strategic foreign investor is held in accordance with the decree of the president of Uzbekistan adopted in April 2015 "On measures to increase the share and the value of private property in the economy." The list of 68 enterprises, state assets of which are offered for sale to strategic foreign investors, was approved by the decree.
Currently, the state's share in the Kyzylkumcement JSC represented by the Uzstroymaterialy JSC is 86.92 percent, while 13.08 percent of shares are owned by minority shareholders - individuals and legal entities.
After selling 35.9 percent of shares to the strategic investor, Uzstroymaterialy JSC will retain 51 percent of controlling block of shares.
Kyzylkumcement was commissioned in 1977. Its design capacity exceeds 3.1 million tons of cement per year.
The enterprise plans to construct the main step-down substation of 220/10 kilovolts by late 2016.
Currently, seven cement plants with the total installed capacity nearing 8 million tons operate in Uzbekistan.
The largest ones are Kyzylkumcement JSC (3.08 million tons), Akhangarancement JSC (1.74 million tons) and Kuvasaycement JSC (920,000 tons).
Cement production increased by 5.1 percent in Uzbekistan in 2014, compared to 2013 and totaled 7.35 million tons, according to the official statistics.
It is planned to increase the cement production in the country by 1.2 times by 2020 compared to 2014 and bring it to 8.9 million tons.