In accordance with the Republic of Uzbekistan Presidential Decree No.UP-5992 of 12 May 2020 "On the Strategy for Reforming the Banking System of the Republic of Uzbekistan in the Period 2020-2025," the State Assets Management Agency of the Republic of Uzbekistan (the “Agency”) hereby announces its intention to dispose of a state-owned block of shares equal to a 100% equity stake in the authorized capital of Poytaxt Bank JSC (the “Bank”) through an open tender process for the sale of this block of shares (the “Transaction”), on the basis of terms intended to maximize the value of the Transaction as well as to facilitate and enhance the further development and financial sustainability of the Bank.
For the purposes of the Transaction, internationally recognized consulting firm Deloitte has been selected as the Bank’s privatization consultant (the “Consultant”).
Brief overview of the Bank
The Bank was established as a joint-stock company on the basis of the decree of the President of the Republic of Uzbekistan "On Additional Measures for Expanding the scale of construction of affordable multi-unit apartment buildings in the City of Tashkent in the Period 2017-2021" dated March 13, 2017 under No. PP-2824.
In accordance with Banking License No. 84, issued by the Central Bank of the Republic of Uzbekistan on 29 December 2018, the Bank’s core activity consists of performing commercial banking operations, including transactions with securities and foreign currency, and providing loans and guarantees. The Bank accepts deposits from consumers, issues loans, executes payments within Uzbekistan and foreign jurisdictions, and provides other banking services to both legal entities and individuals.
Bank participates in the state deposit insurance program approved by the Republic of Uzbekistan Law "On Guaranteeing the Protection of Citizens' Deposits in Banks," which guarantees the payment of 100% compensation on deposits, regardless of the amount of the deposit, in case the Bank's license is revoked.
The Bank carries out its activities through its head office, which is located at 55 Islam Karimov Street, Chilanzar District Tashkent 100063, Republic of Uzbekistan.
The «Akhbor-Rating» rating agency has assigned a credit rating of uzB+, "Stable" to the Bank.
For additional information about the Bank and leading indicators for Uzbekistan’s banking system, please visit https://poytaxtbank.uz and https://cbu.uz.
Transaction process
The sale will be organized as a competitive tender process, open to bids from all interested parties. In accordance with the selected approach, the specific mechanism and process for the sale of the Bank will consist of the following stages:
- Potential bidders (the “Applicants”) will express their interest by submitting a set of documents consisting of applications to participate in the tender, participant and winner selection criteria, and information about the specific Applicant according to the form stipulated in Appendices 1-3;
- Prequalification selection of Applicants;
- Qualification of short-listed Applicants’ commercial and financial bids;
- Completion of the Transaction.
At Stage 1, based on an in-depth review of the documents submitted by the Applicants, the Seller will compile a Long List of Applicants qualified for admission to the next stage (“Qualification of short-listed Applicants’ commercial and financial bids”), each of whom will be notified of the selection results personally.
Participants in Stage 2 will be asked to sign a non-disclosure agreement (NDA). After signing the NDA, all Stage 2 participants will receive further instructions regarding the process as well as informational materials about the Bank by being given access to a dedicated virtual data room (VDR), as well as the right to participate in online/offline information sessions, which will offer opportunities for obtaining detailed information about the Bank within the established timeframe. After reviewing the information about the Bank provided, each Stage 2 participant will be asked to submit a non-binding indicative offer (the “Non-Binding Offers”) for completion of the Transaction.
Based on the Non-Binding Offers received, the Agency jointly with the Consultant will select the qualifying Stage 3 participants, which will be given the opportunity to conduct their own detailed due diligence on the Bank and its operations, including attending management presentations and making onsite visits to the Bank’s premises.
As part of Stage 3, the qualifying participants must then, based on the information obtained, prepare and submit binding commercial and financial bids (the “Binding Offers”) for the Seller’s consideration. Then, based on the results of the selection process, a Short List of qualifying participants will be drawn up, each of whom will be notified of the selection results personally.
Stage 4 participants, which have been included in the Short List and have obtained preliminary approval from the Central Bank of the Republic of Uzbekistan, will be sent a draft Sale and Purchase Agreement (SPA) and an invoice for payment of an earnest money deposit (EMD), together with an invitation to conduct direct negotiations with the Seller. The Seller will select the tender winner according to the results of such negotiations. The Seller will then formally invite the winner to conclude the Transaction in accordance with the laws of the Republic of Uzbekistan.
All interested parties are hereby invited to submit an application, via special envelope, in the form of a letter in English, Russian or Uzbek (at the Applicant’s discretion) and signed by an authorized representative of the Applicant. Applications must be sent no later than 18:00 Tashkent time (GMT+5) on June 20, 2021 to the following email addresses: rmukhametshin@deloitte.ru and G.madakimov@daktiv.uz or by mail to the Agency’s official address: 6 Amir Temur Avenue, Tashkent 100000, Republic of Uzbekistan (contact tel.: +998871 2592207).
The application submission process will be open to all interested parties that meet the criteria of eligible potential investors.
The Agency will take all necessary measures to ensure the transparency, professionalism and successful organization of the process for conducting a tender to sell the Bank jointly with the Consultant engaged for this purpose.
Additionally, the Agency hereby informs you regarding its interest in further expanding the participation of professional financial market participants and qualified investors in the privatization process in the Republic of Uzbekistan.
Additional terms:
The objective of the disposal of the state-owned equity stake in the Bank is to enhance its financial sustainability and expand the range of professional banking services provided, thereby attracting investment and credit lines aimed at maximum satisfaction of the demand for banking services.
The Agency reserves the right to change the sequence of the tender process or to refuse to sell to any potential buyer (buyers) or to negotiate with them at any time without providing a reason.
This announcement, or any part of its content, should not be construed as a form of commitment on the part of the Agency, the Bank and the Consultant in relation to the sale of the Bank, which could potentially be assumed in connection with the publication of this announcement. The Agency and the Consultant reserve the right, at their discretion at any time and in any respect, and without assuming joint or individual liability, to:
(i) amend the application deadline;
(ii) follow different procedures in relation to different stakeholders, and/or negotiate with one or more potential buyers within the framework of the schedule and procedure provided jointly by the Agency, the Bank, and the Consultant, with the exclusion of any other potential buyer(s) without prior notice;
(iii) terminate the sales process for any reason; any/or
(iv) terminate any discussion and negotiation with any potential buyer(s) in relation to the Transaction at any time and without providing a reason.
Application (download)
Criteria for selecting participants (download)
Requirements (download)
