According to the Second State Program on privatization of state property in the Republic of Azerbaijan and “Rules on implementation of investment tender” approved by the Presidential Decree No. 533 dated 17 July 2001, in order to ensure the implementation of the Presidential Decree No. 2979 dated October 29, 2021 “On privatization of some enterprises and facilities on the balance of the Azerbaijan Industrial Corporation” Open Joint-Stock Company, the State Service on Property Issues under the Ministry of Economy of the Republic of Azerbaijan announces investment tender for the sale of 100% state-owned shares of “Sumgayit Textile” Limited Liability Company (hereinafter the “Company”).

Along with physical and legal entities of the Republic of Azerbaijan also foreign investors may participate in the tender.

At the completion of the tender, bidder with more favourable proposals on maximum amount of investment and its efficiency within the defined conditions will be preferred.

1. Information on Joint-Stock Company

(As of 01 May 2023)

Legal address:	Sumgait city, 3 Sulh street
Main activity of Limited Liability Company:	production of yarn and knitted products
Share capital:	10 112 000 (ten million one hundred twelve thousand) manats
Total number of shares:	101 120 (one hundred and one thousand one hundred and twenty) units
Value of a share: Quantity of shares offered for sale at investment tender: Total nominal value of shares offered for sale at investment tender:	100 (one hundred) manats 101 120 (one hundred and one thousand one hundred and twenty) units 10 112 000 (ten million one hundred twelve thousand) manats
Characteristics of covered area and buildings:	indicated in the Technical Passport of the Company
Shares of company in other enterprises:	none
Intangible assets:	none
The ecological condition of the company:	satisfactory
Number of employees:	2 people
Liabilities of Company:	346 641 (three hundred forty six thousand six hundred forty one) manats
including,
- debts to the state budget: - debts to SSPF	58 (fifty eight) manats 47 378 (forty seven thousand three hundred seventy eight) manats
- salary and equivalent debts	6 034 (six thousand thirty four) manats
- other debts	293 171 (two hundred ninety three thousand one hundred seventy one) manats
Receivables:	54 603 (fifty four thousand six hundred three) manats

2. Requirements and provisions for bidders

2.1. Submitting an Investment Program in the amount not less than 8 000 000 (eight million) AZN indicating the investment trends, total amount and terms of investments reflecting the following issues for the purpose of development of the enterprises’s activities.

2.1.1. proposals for restoration and reconstruction of existing buildings and facilities;

2.1.2. proposals for the repair and renewal of existing equipment and technologies (if considered appropriate), as well as the introduction of new equipment and technologies;

2.1.3. proposals for the application of new technological solutions for working on textiles, including nanotechnologies;

2.1.4. proposals for improving infrastructure provision;

2.1.5. proposals for restoring and increasing the number of workplaces (not less than 300), as well as social measures;

2.1.6. proposals for improving management and increasing its efficiency through the application of corporate management methods in the company;

2.1.7. proposal on the amount to be transferred and its use of certain part of 5 (five) % of total proposed investment amount in the cash form to the settlement account of the Joint-Stock Company;

2.2. In the proposed Investment Program, the specific weight of investments to be invested in equipment renewal and repair, as well as repair-construction and reconstruction-restoration works should not be less than 65% of the total investments.

2.3. Proposals on payment to be paid to the state budget for the purchase of the shares of company (not less than 4 000 000 (four million) AZN or (payments made in foreign currency should be converted into Azerbaijani manat in accordance with official exchange rate of the Central Bank of the Republic of Azerbaijan on the relevant date)

3. 3. Documents to be submitted by bidders

3.1. Application for participation in the tender (in an open envelope).

3.2. . Receipt confirming the cash transfer of 1 000 000 (one million) AZN to the AZN deposit NO. AZ65 NABZ 0136 1150 0000 0000 4944 (code: 501004; correspondence account: AZ74 NABZ 0145 1700 0000 0000 1944; Tax ID: 9900071001; SWIFT bik: NABZAZ2C) of the State Committee on Property Issues of the Republic of Azerbaijan in the Central Bank of the Azerbaijan Republic confirming the seriousness of the bidder and warranting its compliance with the terms and conditions of the tender or the guarantee letter in the same amount (form of bank guarantee letter is identified by seller). This payment of the bid winner will be considered during the fulfilment of Article 2.3, however payment of other bidders will be returned.

3.3. If the bidder is a legal entity, the following documents shall be submitted in an open envelope:

- duly certified copy of charter;

- duly certified copy of the documents confirming the registration of the bidder as a legal entity;

- duly certified copy of the founding agreement and the order on the appointment of another legal head of the TIN;

- information reflecting the activity of the enterprise;

- information on existing activity in the Republic of Azerbaijan (for foreign legal entities);

- confirming the payment provided for in paragraph 3.2 and one of the determined guarantee documents;

- list of submitted documents.

If the bidder is a phyisical entity, the following documents shall be submitted in an open envelope: - duly certified copy of the identification card;

- information about bidder;

- information on the bidder's business activity and TIN;

- information on existing activity in the Republic of Azerbaijan (for foreign physical entities);

- confirming the payment provided for in paragraph 3.2 and one of the determined guarantee documents;

- list of submitted documents.

The following documents (legal and physical persons) shall be submitted in a secondly sealed separated envelope:

- Investment Program;

- Proposal on money to be paid to the state budget.

Documents in any foreign language should be submitted with their texts to be translated to Azerbaijani and be certified by the bidder. In case of discrepancy between the texts, Azerbaijani text shall prevail.

4. Requirements and provisions for tender winner

4.1. Tender winner should ensure the followings:

4.1.1. The signing of purchase and sale agreement of state-owned shares of the company during 30 (thirty) days from the date of approval the protocol on the results of the tender;

4.1.2. From the signing date of the purchase and sale agreement of state-owned shares of the company:

- transfer of the proposed funds to the state budget on the terms to be agreed in the agreement;

- payment of debts of the company to the state budget and SSPF within the period to be agreed in the contract;

- payment in the amount of 7,198 (seven thousand one hundred ninety eight) to the consulting company involved in connection with the implementation of this project within 30 (thirty) calendar days (including VAT);

- transfer of up to 5% of the total amount of the proposed investment within 60 (sixty) calendar days in the form of cash to the settlement account of the company, determined by the Investment Program;

- creation of new workplaces to be committed, but not less than 300;

- fulfillment of other conditions and obligations defined by the contract, as well as the implementation of the investment in accordance with the direction, amount and stages specified in the Investment Program.

4.2. For review the Privatization plan (issue prospectus) of the Joint-Stock Company, get acquainted with the joint-stock company and get additional information about the investment tender bidders can contact the following address on working days from from 10:00 till 17:30 until 05 July 2023, 139 H.Aliyev avenue, Baku city, Nizami district, State Service on Property Issues, Room 1210 tel.:+994 12 311 01 60 (ext: 1314 and 1315) office@emlak.gov.az.

4.3. Acceptance of applications and proposals of the bidders will be held till the date of 06 July 2023 from 10:00 till 17:30 in the following adress specified in paragraph 4.2.

4.4. Tender proposals will be assessed on 07 July 2023 starting from 15:00 at the administrative building of the State Service on Property Issues.