Uzbekistan Reduces Stake in Strategic Steel Mill Uzmetkombinat for Sale to Foreign Investors

Strategic Insights -

Uzbekistan's State Property Committee has decided to reduce the portion of its strategic steel mill Uzmetkombinat to be sold to foreign investors from 33% to 22%. The government will retain a controlling 51% stake in the enterprise, which has the capacity to produce 750,000 tons of steel per year. The decision follows a failed tender last year that was called off due to a lack of competitive bids. The government is planning to make further attempts to sell a stake in Uzmetkombinat to a foreign investor this year.

Key Takeaways:

  • Uzbekistan's State Property Committee has reduced the planned stake sale in Uzmetkombinat from 33% to 22% to be sold to foreign investors.
  • The government will retain a controlling 51% stake in the enterprise, up from the previously planned 40%.
  • Uzmetkombinat has the capacity to produce 750,000 tons of steel per year, and smelted 602,160 tons of steel in 2004, up 24% from 2003.
  • The government will own 51% and employees 9.3% of Uzmetkombinat once the 22% has been sold, with the remaining 17.7% owned by other companies, including the National Foreign Trade Bank and UzDaewoo Auto.
  • The sale of Uzmetkombinat's stake is being advised by an international consortium led by Austria's CA Investmentbank AG.
  • The government is planning to make further attempts to sell a stake in Uzmetkombinat to a foreign investor this year.

Statistics:

  • 22%: reduced stake in Uzmetkombinat to be sold to foreign investors.
  • 51%: controlling stake in Uzmetkombinat to be retained by the government.
  • 750,000 tons: annual steel production capacity of Uzmetkombinat.
  • 602,160 tons: steel smelted by Uzmetkombinat in 2004, up 24% from 2003.
  • 2.641 billion som: charter capital of Uzmetkombinat.
  • 9.3%: stake in Uzmetkombinat to be owned by employees after the sale.
  • 17.7%: stake in Uzmetkombinat owned by other companies, including the National Foreign Trade Bank and UzDaewoo Auto.

Sources:

  • "Asia Pulse: Uzbekistan's state property committee reduces stake sale in Uzbekistan's only steel mill" (April 1, 2005) - Interfax.