Indorama Corporation acquires 99.02% state-owned shares of Ferganaazot

Tashkent, Uzbekistan (UzDaily.com) -- Singapore’s Indorama Corporation acquires 99.02% state-owned shares in equity capital of Ferganaazot JSC, the State Assets Management Agency said. The deal cost is US$140 million. Singaporean company will also invest another US$100 million for the modernization of the plant.

Term sheet of the transaction on sale of 99.02% state block of shares in equity capital of Ferganaazot was signed on 16 January 2023 at Uzbekistan-Singapore Business Forum, organized on the eve of the state visit of the President of the Republic of Uzbekistan to Singapore.

The agency said that Deloitte works as leading financial advisor of the transaction, the International Finance Corporation (IFC) supports as strategic advisor, while KPMG conducts inpedendent valuation of the Company.

The privatization process of the enterprise started in December 2021.Ten Express of Interests were received. Based on qualification results 4 applicants were recognized as fully compliant with the qualification criteria and accepted for the next stage of the process.

The qualified applicants were given the opportunity to conduct their own due diligence of the Company, to review analytical reports on financial, tax, legal and environmental issues, prepared by the Advisor, to meet with the management of the Company and prepare their Binding Offers.

As a result of Binding Offer process, the best offer was submitted by Indorama Corporation Pte. Ltd (Singapore). The submitted purchase price amounts US$140 million (US$130 million plus 107 billion soums) besides investor’s investment obligations of US$100 million for modernization of the company. 

Indorama Corporation Pte. Ltd. as one of the largest international producers of mineral fertilizers is capable to conduct deep modernization of the Company, which production assets depreciation level currently exceeds 80%.

Indorama Corporation is an international industrial conglomerate with more than 160 manufacturing facilities in 38 countries. Indorama is one of the world's leading manufacturers of fertilizers, polymers, industrial chemicals, fibres, textiles, agricultural and medical gloves with over 45,000 employees. The company has been actively investing in Uzbekistan since 2010, and is developing projects in textiles, agriculture and fertilizer production with more than 3,000 local employees.