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Uzavtosanoat JSC to increase statutory fund amid harsh criticism

Business Materials 27 June 2018 12:28 (UTC +04:00)

Baku, Azerbaijan, June 27

By Fikret Dolukhanov – Trend:

Uzavtosanoat JSC (the country's major car manufacturer) intends to increase its statutory fund by 529.945 billion soums, the company stated on June 27.

The corresponding decision was made by the supreme management body of the company.

In accordance with the plans, the company intends to issue and place more than 529.945 billion common shares with a nominal value of 1 soum each.

The shares will be placed by private subscription of the State Committee on Competition of Uzbekistan in order to increase the state's share in the company's authorized capital at market value, but not lower than the nominal value through the Over-The-Counter market in accordance with the procedure established by law.

After additional issue and placement of shares, the total amount of the company's authorized capital will be 1.413 trillion soums.

Uzbek President Shavkat Mirziyoyev earlier noted that the automobile industry plays a vital role in the country's economy, however, production and exports have recently declined. The head of state criticized the widespread corruption, bribery, nepotism at all levels in the sphere.

The president reminded that there are a lot of debts in the structure of Uzavtosanoat JSC (the country's major car manufacturer). Several enterprises of the company completed 2017 with losses. For a number of years the export of cars was carried out at a price lower that the prime cost and no action was taken to actually reduce the latter.

Head of state instructed to reduce the prime cost of automotive products, increase the level of localization and reduce the volume of imports.

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Follow the author on Twitter: @FDolukhanov

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