The State Assets Management Agency of the republic of Uzbekistan

In accordance with the relevant privatization programs, State Assets Management Agency (hereinafter - the UzSAMA) announces the start of the open sales process of 100% shares in Khiva Plaza LLC ("Farovon Khiva" Hotel) and Khiva Lokomativ LLC ("Khiva Lokomotiv" Hotel) (hereinafter – Assets) through the engagement of a professional consultant.

Company “RSM Uzbekistan” (hereinafter - Consultant) was selected by UzSAMA as a privatization consultant to implement the privatization process based on international best practices.

Brief information about the Assets:

Khiva Plaza LLC ("Farovon Khiva" Hotel):

• The hotel is the only international level hotel in this area;
• The hotel is located 3 km away from “Ichan Kala”;
• Address: Khorezm region, Khiva city, Kiyot MSG, Buyuk Yul street, 1B;
• The total area of the land plot is 2.72 hectares, area of buildings and structures - 8,773 square meters;
• Number of available rooms - 106;
• The hotel has 12 multifunctional conference halls for 700 people, a banquet hall, 4 restaurants, a sauna and a swimming pool.

Khiva Lokomativ LLC ("Khiva Lokomotiv" Hotel):

• The hotel is located in the cultural and historical center of the city, 1 km away from “Ichan Kala”;
• Address: Khorezm region, Khiva city, Yangi khayot microdistrict, A. Temur street;
• The total area of the land plot is 0.77 hectares, area of buildings and structures - 3,504 square meters;
• Number of available rooms - 78.

About the sales process:

The sales process for the Assets is based on a public invitation to negotiations method, which is open to all interested parties (hereinafter - Participants).

The process of selection of buyers will be carried out in two stages including Express of interest and Binding offer (BO) stage.

About the implementation of the Express of Interest stage of the sales process:

Candidates are invited to express their interest for each asset in the form of an Application (Express of Interest) including the following information:

1. Information on the applicant,  for an individual: a copy of passport/ID-card, as well as data confirming the financial feasibility of acquiring the asset;
2. Information on the applicant, for a legal entity:
3. • information on the enterprise/company, including a copy of the founding documents (charter) and registration certificate, as well as TIN data;
   • Information on shareholders/participants, as well as the ultimate beneficiary, indicating the share of the founder/participant/shareholder with a share of more than 5% in cases where the founder/participant/shareholder is more than one;
   • Financial statements for the last 3 years (if the company has been established for less than 3 years, financial statements for the period of its operation).

The Expression of Interest can be prepared separately for each asset in Uzbek, Russian or English languages until 18:00 (Tashkent time) on October 31, 2024 and sent to the following e-mail address: info@rsm.uz.

As part of this sales stage, in order to attract potential investors by the Consultant investment teasers distribution works are carried out.

Received applications will be sorted according to the following criteria:

• Sufficient financial resources to purchase the asset;
• must not be an enterprise with state participation (a business entity with a state share in the authorized fund (authorized capital) of more than fifty percent or a business entity with the size of the state share in the authorized fund (authorized capital) greater in relation to the share of each other shareholder (participant) of the business entity, as well as a state unitary enterprise);
• the absence of administrative, arbitration or other legal proceedings that may prohibit participation in the privatization process;
• Compliance with the Law of the Republic of Uzbekistan No. 660-II "On combating the legalization of proceeds from criminal activities, the financing of terrorism and the financing of the distribution of weapons of mass destruction";
• The applicant (in the case of a consortium, none of the members of the consortium) and none of its related persons must not be included in the list of sanctions of the European Union and the United States, as well as major international financial institutions (World Bank, European Bank for Reconstruction and Development, Asian Development Bank). However, on the date of application, the applicants should not be the subject/(s) of any case or investigation by the sanctioned person/(s) or the sanctioning authorities mentioned above. Also, the applicants (in the case of a consortium, none of the members of the consortium) and none of its related persons must not be involved in any activity (directly or through any of its subsidiaries) that is contrary to the sanctions regime of the aforementioned institutions and countries, and the Applicant (consortium) in case, none of the members of the consortium), as well as any of its related persons, should not be the main financing parties or creditors of the sanctioned persons or banks or financial institutions owned or controlled by the sanctioned persons.

The contact persons for this project are:

• Dimitry Abbasov, specialist of “RSM Uzbekistan”: d.abbasov@rsm.uz, tel.: +998(91) 770-16-73;
• Shokhrukh Okhunov, Head of department of the UzSAMA: tender@davaktiv.uz, tel.: +998(71) 259-20-23.

In turn, before submitting binding offers, the applicants who passed the stage of submitting Binding Offers (BO) are obliged to deposit at least 1 % of the proposed binding offer price as a security payment, as well as undertake to maintain the activity of the Assets for at least 5 years.

The results of each stage of the sales process are officially disclosed on the official platforms of UzSAMA, and the consultant provides formal, individualized notification to each participating candidate via process letters.

DISCLAIMER: