HeidelbergCement reportedly considering Uzbekistan investment

Uzstroymaterialy JSC and HeidelbergCement have started the active phase of negotiations for the acquisition of 35.9 per cent of shares of Uzbekistan cement producer Kyzylkumcement JSC, the company told Trend News Agency.

In early November, the parties signed a memorandum of intent to acquire shares of the cement plant, according to the joint-stock company.

“Currently, we define all the conditions for the strategic investor to enter the number of shareholders of the JSC, namely the cost of the proposed share, strategies for action of the German company as a shareholder, including its participation in the modernisation of production, personnel training,” a spokesman said.

A company representative said that the work on the sale of 35.9 per cent of shares of the company to a strategic foreign investor is held in accordance with the decree of the president of Uzbekistan adopted in April 2015 “On measures to increase the share and the value of private property in the economy.” The list of 68 enterprises, state assets of which are offered for sale to strategic foreign investors, was approved by the decree.

Currently, the state's share in Kyzylkumcement JSC represented by the Uzstroymaterialy JSC is 86.92 per cent, while 13.08 percent of shares are owned by minority shareholders.

After selling 35.9 perc ent of shares to the strategic investor, Uzstroymaterialy JSC will retain 51 per cent of controlling block of shares.

Kyzylkumcement's design capacity exceeds 3.1Mta.