Uzbekistan sales its share in hotel to Singaporean company
BAKU, Azerbaijan, May 28
By Ilkin Seyfaddini - Trend:
The state share in the Uzbekistan hotel in the country capital Tashkent was sold to Singapore's Bashan Investment Group Ltd. for $23.2 million through a public tender, Trend reports citing the State Assets Management Agency of Uzbekistan.
The sale of the state share in the JV Otel Ozbekiston LLC, which manages the hotel, at a rate of 80.13 percent was provided under presidential decree on measures to attract additional investment in the hotel sector of 14 August 2018.
The initial price put up for public share bidding in February 2019 was $33 million. At the same time, the winner was obliged to maintain the main activity for 10 years, preserve the external facade of the hotel, and attract reputable managers.
As no bids were received from potential buyers, the price began to decline, first by 10 percent and then by a total of 30 percent. As a result, the cost of government share decreased to $23.1 million, after which six companies from the UK, Turkey, UAE and Singapore showed interest in buying.
State Tender Commission of Uzbekistan chose Bashan Investment Group Ltd. of Singapore, which will pay $23.2 million within 24 months and invest at least 100 billion soum ($9.8 million) in modernization of Uzbekistan Hotel.
Bashan Investment Group Ltd. was registered on December 2, 2005. Its main activity is management of other holdings, while it is also engaged in Japanese TV series, documentary films and TV shows.
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