In accordance with the relevant privatization programs, the State Assets Management Agency announces the commencement of an open sales process of 99.55% state share in the authorized capital of JSC “Shargunkomir” (hereinafter - the "Enterprise").

In order to ensure the effective organization of the privatization process, LLC “Alkes Research” (hereinafter - the "Consultant") was engaged as a privatization consultant.

Brief information about Enterprise:

JSC “Shargunkumir” is one of Uzbekistan’s leading coal mining companies, specializing in underground mining in the Surkhandarya region.

• Located in the Shargun district of the Surkhandarya region
• Production capacity – 900,000 tons per year
• Actual production (2024) – 900,000 tons
• Proven reserves:
  • Categories A+B+C1 – 31.5 million tons;
  • Category C2 – 7.1 million tons
• CC coal with ash content up to 30% and high calorific value
• Own railway infrastructure
• Presence of a dry coal enrichment plant
• Offtake contracts concluded

Information about the sales process:

The privatization process is open to both local and international participants and will be carried out in two stages:

• Expression of Interest (EoI);
• Submission of Binding Offers (BO).

Requirements for the EoI stage:

Applicants must submit EoI applications containing the following information:

• Brief information about the Participant (including registration details, type of activity).
• Information about shareholders/participants holding more than 5% of the Participant's share capital (indicating the share of ownership), as well as about the ultimate beneficiaries.
• Financial statements for the last 3 financial years.

EoI applications may be prepared in Uzbek, Russian, or English and are required to be submitted until 23:59 (Tashkent time) on November 14, 2025, to the following email address: info@alkes.co 

Received applications will be assessed for compliance with the following criteria:

• sufficiency of financial resources to acquire the state-owned share;
• absence of any judicial, administrative, arbitration, or other proceedings that could result in a prohibition on participating in the privatization process;
• compliance with the Law of the Republic of Uzbekistan No. 660-II “On Counteracting Legalization of Proceeds of Criminal Activity, Financing of Terrorism, and Financing of the Proliferation of Weapons of Mass Destruction”;
• neither the Applicant (nor, in the case of a Consortium, any Member of the Consortium), nor its shareholders/participants shall be a state-owned company;
• neither the Applicant (nor, in the case of a Consortium, any Member of the Consortium) shall be included in the public sanctions lists of the European Union and the United States, as well as any of the major international development banks (the World Bank, the European Bank for Reconstruction and Development, the Asian Development Bank), or as of the date of submission of the Application, shall be a sanctioned person or entity or the subject of any proceedings or investigation by the aforementioned sanctions authorities. Also, neither the Applicant (nor, in the case of a Consortium, any Member of the Consortium), nor any of its/their affiliated parties shall be in any way involved in any activity (directly or through any subsidiary company) that is contrary to the sanctions regimes of the above-mentioned institutions and states, and neither the Applicant (nor, in the case of a Consortium, any Member of the Consortium), nor any of its/their affiliated parties shall have as main financing parties or creditors any banks or financial institutions that are sanctioned entities, or entities controlled by or belonging to sanctioned entities.

After completion of the EoI stage, a list of applicants who have been selected to proceed to the next stage will be compiled, and the State Assets Management Agency will make an announcement regarding the results of this stage. All interested applicants will be individually notified by the Consultant of the results of the process and information about the next stage via a Process Letter.

Brief information about the next stage:

Participants who have passed to the BO stage will sign a Non-Disclosure Agreement (NDA), under which they will be granted access to a virtual data room (VDR) and will be able to review financial, tax, and legal analytical reports prepared by the Consultant and visit the Enterprise.

Prior to the submission of Binding Offers (BO), considering the company's development strategy, participants will be provided with an Agreement on the main terms and conditions of the acquisition of the Enterprise and its further activities (Term Sheet). Also, the applicants will have to transfer, through their personal account in the electronic trading platform "E-auksion", at least 1% of the amount of the proposed binding price offer as a guarantee payment (mortgage). In this case, this guarantee payment (mortgage) is returned to the participants upon completion of the process, and the guarantee payment (mortgage) of the winner of the privatization process is transferred to the privatization fund as part of the redemption payment.

After the publication of this announcement, the Consultant will implement a set of measures to promote the Enterprise, distribute investment teasers, and engage in active dialogue with investors.

The State Assets Management Agency, in cooperation with the Consultant, will provide the public with information on each stage of the sales process and ensure that participants are kept informed.

For further information, please contact:

• Odil Musaev, Director of “Alkes Research” LLC: omusaev@alkes.co, tel.: +998(99) 928-88-29;
• Ilyosbek Abdujambulov, State Assets Management Agency: i.abdujambulov@davaktiv.uz, tel.: +998(71) 259-21-50.

Disclaimer:

State Assets Management Agency reserves the right to change the sequence of the sales process or to refuse to sell to any potential buyer(s) or to conduct negotiations with them at any time without providing an explanation of the reason.

This announcement, or any part of its content, should not be considered as a form of commitment by State Assets Management Agency regarding the sale of the Enterprise that could be implied in connection with the publication of this announcement. State Assets Management Agency reserves the right, at its sole discretion, at any time and in any respect, without assuming joint or individual responsibility to:

• make changes to the deadlines and procedure for the stages of the sales process;
• follow different procedures for different interested parties and/or negotiate with one or more potential buyers within the schedule and procedure jointly established by the State Assets Management Agency, excluding any other potential buyer(s) without prior notice;
• terminate the sales process for exact reasons;
• and/or terminate any discussions and negotiations with any potential buyer(s) regarding the Transaction at any time and without providing explanations.