On measures for further improvement of valuation activity and simplify mechanisms for the implementation of low-profit and dormant companies with state participation

The Decree of the President of the Republic of Uzbekistan was adopted in order to further develop an independent evaluation system, increase the professional level and quality of valuation services, introduce effective methods of regulating the activities of valuation organizations, strengthen their responsibility for the results and objectivity of valuation work, as well as simplify the implementation of state assets, and suggests following:

First, state assets can now sell below their nominal value from the original billing price.

Secondly, the Government will approve a list of business companies within a month, in which state-owned shares are put up for public auction without applying the preemptive right to acquire them by participants. The starting price in this case is equal to the proportional share of net assets as of January 1, 2019 according to the balance sheet approved by the auditing organization. And if the amount of net assets is less than the authorized capital, the shares (shares) are set at nominal value.

Thirdly, investors have the right to acquire state-owned shares (shares), paying their value in national currency from accounts in clearing houses of commodity exchanges, correspondent accounts “loro” in Uzbek banks.

Fourth, no longer required:

-audit report confirming the positive financial results of the last 3 years – for the implementation of underwriting activities (services for the organization of issue and / or guaranteed placement of the issuer’s securities);

-certificate of completion of the course of retraining or advanced training – for obtaining a qualification certificate of a securities market specialist.

When privatizing state-owned blocks of shares (shares) for the services of an investment intermediary or consultant, remuneration is paid, which is determined in the agreement, including:

-up to 1% – by decision of the Agency for the management of state assets;

-up to 2% – by the decision of the State Commission for the sale of state property.

Until January 1, 2020, organizations, including non-residents, without a license of an investment consultant, may be attracted by organizations to provide services for the sale of securities as an exception. This right belongs to the Agency for the Management of State Assets and Business Companies with the predominant share of the state in coordination with the Agency for the Development of the Capital Market.

From August 1, 2019, Goskomstat will introduce a monthly calculation of the index of the rise in prices for construction and installation works. Until January 1 of next year, they will review and update the aggregate indicators of replacement cost, taking into account the current trends in the construction of buildings and structures. And before December 1 of the current year, they must approve uniform national standards for the assessment of objects, regardless of their form of ownership, on the basis of international assessment standards and best foreign practices.