A developer from Tashkent has successfully acquired a 50% stake in the Uz-Dongju Paint factory, an important player in the automotive and household paint industry. The State Asset Management Agency announced (SAMA) the sale, which was finalized through an agreement with the Comfort Engineering Group.
Sale and Privatization Process
The state's share in the joint venture Uz-Dongju Paint was first put up for sale in October 2022. The privatization process was overseen by a consortium of Resolut and Dentons, who acted as consultants. Initially, eight potential investors expressed interest in the purchase. After thorough checks for insolvency, court proceedings, and compliance with international sanctions, four applicants were permitted to submit binding proposals.
The tender commission selected Comfort Engineering Group as the winning bidder with an offer of UZS 24bn ($1.9bn). This bid was at the upper limit of the indicative price range calculated by the consultants, as noted by SAMA.
Investment and Job Creation Commitments
As part of the acquisition agreement, Comfort Engineering Group has pledged to invest $5mn in the factory's production facilities. Additionally, the company committed to creating 200 new jobs. Another significant promise made by the buyer includes maintaining product compliance with General Motors standards and OEM requirements, ensuring high-quality output.
About JV Uz-Dongju Paint Co.
Established in 1995, JV Uz-Dongju Paint Co. specializes in producing a variety of paint and varnish products, sealants, and chemicals for treating car bodies under the Royal Paint brand. The company also manufactures construction and industrial paints, chemicals for treating tin containers and metal barrels. Furthermore, it operates a workshop producing sports shoes and rubber parts, employing a total of 300 people.
The main production facility of Uz-Dongju is located in Asaka. The company also owns three stores in Andijan, subsidiary farms covering 25 hectares, and two rest houses in the Bostanlyk district of the Tashkent region.
About Comfort Engineering Group
Comfort Engineering Group, established in Tashkent in 2009, is primarily engaged in housing construction. The company's founders are Davron Juraev (41.8%), Doniyor Juraev (35.1%), and Farida Juraeva (23.1%). The group has built a reputation for quality construction projects and now expands its portfolio with this strategic acquisition in the paint manufacturing industry.
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