Cyprus holding to privatize Kyzylkumcement for 1.89 trillion soums

It was the international holding United Cement Group. The company is acquiring 86.92% of shares in Kyzylkumcement for 1.89 trillion soums. According to UzAssets, the proposed price is significantly higher than the level of recent similar transactions in the industry.

Deloitte acted as the financial consultant on the deal, and Grant Thornton carried out the assessment of the state stake. The offer was selected on the basis of meeting all criteria, price parameters, as well as social obligations.

The buyer undertakes to maintain the number of personnel and salaries, as well as to train personnel. In addition, the new owner will support social and environmental projects in the Navoi region.

United Cement Group produces cement for general construction and special grades, as well as other building materials. The holding has been operating since 2005 and has become the largest cement producer in Central Asia.

In Uzbekistan, United Cement Group controls the Kuvasaycement and Bekabadcement plants, in Kyrgyzstan – the Kant cement plant. Also, the company, registered in Cyprus, owns other large assets in Kazakhstan and Russia.

At the end of 2020, Uzbekistan returned 51% of the shares of Bekabadcement to a group of 12 Kazakh shareholders as part of the settlement of their arbitration claim. Prior to that, it became clear that a group of persons headed by Gulnara Karimova had acquired the state-owned stake in Bekabadcement at reduced prices.