11 December 2021

Privatization of 99% of Ferganaazot shares begins

In accordance with the Presidential Decree PD-4992 of the Republic of Uzbekistan, dated 13 February 2021, “On measures to further accelerate privatization processes of state assets”, the State Assets Management Agency of the Republic of Uzbekistan (“UzSAMA” or “the Seller”) announces its intention to sell its 99.02% stake in the share capital of  JSC Farg’onaazot (“the Company” or “Farg’onaazot”) through the public negotiation invitation (“the Transaction”).

International consulting firm Deloitte TCF LLP (“Deloitte”) is acting as the lead consultant to UzSAMA on this Transaction. The International Finance Corporation (“IFC”) is expected to assist in the privatization of the asset.

Brief information about the Company:

JSC Farg’onaazot was established in 1962 and is currently one of the largest producers of mineral nitrogen fertilizers, defoliants and cellulose acetates in Uzbekistan. The enterprise consists of three main complexes:

  • Production of mineral fertilizers: large-capacity aggregate of ammonia AM-76, production of concentrated nitric acid NA-72M and ammonium nitrate AN-72M, production of urea;
  • Production of sodium chlorate and magnesium chlorate defoliant;
  • Production of cellulose esters and thread acetate.

Additionally, the Company operates workshops such as workshops for the production of nitrogen-phosphorus fertilizer NPhF, liquid fertilizer (KAS), liquid nitrogen and calcium fertilizer, fertilizer for greenhouse “Darmon”, sodium nitrate, sodium bicarbonate, polyethylene bags for packaging of fertilizers and others.  The total production capacity of the Company is 2.8 million tons of fertilizers per year.

The financial results of the Company demonstrate positive dynamics. In 2020, the Company’s net profit amounted to 292.6 billion soums (in 2019, 220 billion soums), by the end of 2021 additional growth is expected, which will be reflected in updated indicators and uploaded to the data room (VDR), and will be available to potential investors upon execution of non-disclosure agreements (NDA).