The State Assets Management Agency of Uzbekistan (UzSAMA) has announced a significant step towards the privatisation of Foton that is a leading electronic equipment and integrated circuits manufacturer. With 85.6% of the state's share in the company's authorised capital up for sale, the privatisation process presents a unique opportunity for interested parties to acquire a stake in this promising asset. ABRAU CAPITAL, acting as the privatisation consultant, will oversee the transaction, inviting potential investors to express their interest and participate in this competitive sale process.
About Foton JSC
Foton has established itself as a key player in the development and production of electronic equipment and integrated circuits used in radio electronic devices. Additionally, the company specialises in manufacturing various electronics-based products. Its impressive portfolio comprises over 70 different technologies, including those for manufacturing discrete and planar semiconductor diodes, low-noise field-effect transistors, and integrated microcircuits.
Key financial indicators
With a share capital of $93,347.53 (1.08 bn UZS) and a workforce of 296 employees, Foton showcases a strong foundation for growth and innovation in the industry.
Privatisation process
The privatisation process will be conducted through a competitive sale process, open to all interested parties referred to as "Applicants." Those keen on participating are invited to express their interest by submitting an Express of Interest application. The application must include essential information about the Applicants, their financial statements for the last three years, and compliance with Uzbekistan Law #660-II, aimed at countering illegal activities.
Selection criteria for applicants
To ensure a transparent and fair process, UzSAMA will evaluate Applicants based on certain criteria. Key factors include the financial capacity to acquire the Asset, a clean legal record without any disqualifying proceedings, and adherence to international sanctions and regulations.
Next stages and information disclosure
Applicants who successfully pass the Express of Interest stage will proceed to the Submission of non-binding offers (NBO) stage. At this stage, they will be required to sign a Non-Disclosure Agreement (NDA) to gain access to a Virtual Data Room (VDR). The VDR will contain an Information Memorandum prepared by ABRAU CAPITAL, providing valuable insights to help prepare indicative non-binding offers for the purchase of Foton.
The privatisation of Foton marks an exciting opportunity for investors looking to capitalise on the potential of the electronic equipment and integrated circuits market. As the process unfolds, UzSAMA and ABRAU CAPITAL will oversee a fair and transparent procedure, ensuring that all interested parties have an equal chance to participate. With a well-established company and strong financial indicators, Foton is poised to attract significant attention from the investor community. The deadline for expressing interest is August 15, 2023, 18:00 (Tashkent time), making it essential for prospective applicants to act promptly. For more information and inquiries, interested parties can contact the designated communication channels.
During a roundtable in 2020 in Tashkent, Mansur Khashimov, the first deputy chairman of the Uzeltekhsanoat association, proposed the sale of the government's 83.15% stake in FOTON to Russian investors. The company manufactures a diverse range of products, including over 30 types of semiconductors and microcircuits, TVs, vacuum cleaners, and online cash registers.
All of FOTON's products are exclusively exported to Russia under an intergovernmental agreement, catering to the needs of defense industry enterprises. In January-November 2020, the total value of goods exported amounted to $ 1.17 mn, with a slight decrease from $ 1.33 mn in 2019.
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