“Uzagroexportbank” is sold for $5 million

The State Assets Management Agency has reached an agreement on the privatization of “Uzagroexportbank”, reports Spot with reference to the Agency.

The new owner of 100% of the shares will be a foreign company Support Level. According to the report, the deal will cost $5 million, slightly higher than the bank’s estimated net assets according to Grant Thornton (50 billion soums).

The buyer also undertakes to replenish the authorized capital of the bank for the missing 29 billion soums. In addition, he will have to invest $50 million in the infrastructure and technologies of the financial institution.

According to the appraiser, after the suspension of lending operations in December 2019, the portfolio of “Uzagroexportbank” decreased to 6.1 billion soums, and most of it falls on problem loans. The bank’s losses currently amount to 31 billion soums.

According to USREO, Support Level was established in 2015. The sole founder of the company is Olimjon Kasymovich Shadiev, who is also the Deputy Chairman of the NMMC Supervisory Board and an affiliate of the “Continent” Investment Group.

“Uzagroexportbank” was established in 2017 and was 100% owned by the Tashkent Khokimiyat. Among its main tasks are financial support for exporters, ensuring the development of the export potential of fruits and vegetables.

The intention to sell the state-owned stake in its entirety became known in May 2021, and in July the first stage of the qualifying selection of applicants was completed. Information about its possible purchase by “Sovcombank” appeared in November.

The State Assets Management Agency and “Sovcombank” agreed to sell Uzagroexportbank for $4 million at the beginning of the year. The official announcement of the deal was published on February 23, the day before the start of large-scale hostilities in Ukraine.

The very next day, seven Russian credit institutions, including “Sovcombank”, fell under sanctions. In June, the deputy head of the bank, Sergei Khotimsky, announced the cancellation of the purchase of an Uzbek bank.