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 Order No. 3703 dated December 30 2022, "On the privatization of some enterprises and objects on the balance sheet of “Agrarcredit” Closed Joint Stock Company a non-bank credit organization, 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 the former "Karadagh Marble Granite" and currently “Baku Marble Granite” 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 Company

(As of 01 April 2024)

Legal address: Baku city, Garadagh district, Lokbatan settlement, Khojasen road, 7

Main activity of the Company: cutting, polishing and processing of marble and granite

Share capital: 17 059 000 (seventeen million fifty nine thousand) manats

Total number of shares: 170 590 (one hundred and seventy thousand five hundred ninety) pieces

Value of a share: 100 (hundred) manats

Quantity of shares offered for sale at 170 590 (one hundred and seventy thousand five hundred ninety) pieces

investment tender:

Total nominal value of shares offered for 17 059 000 (seventeen million fifty nine thousand) manats

sale at investment tender:

Characteristics of covered area and buildings: 6.9 ha (of which 0.88 ha falls within the conservation zone) characteristics of the buildings are indicated in the technical passport of the Company

Shares of joint company in other enterprises: none

Intangible assets: none

The ecological condition of the

joint stock company: satisfactory

Number of employees: 3 people

Liabilities of the Company: 689 292 (six hundred eighty nine thousand two hundred ninety two) manats

including:

- debts to the state budget 68 138 (sixty eight thousand one hundred thirty eight) manats

- salary and equivalent debts 152 714 (one hundred fifty two thousand seven hundred fourteen) manats

- debts to SSPF 99 060 (ninety nine thousand sixty) manats

- bank credits 144 923 (one hundred forty four thousand nine hundred twenty three) manats 

- other debts 224 457 (two hundred and twenty four thousand four hundred fifty seven) manats

Receivables: 232 513 (two hundred thirty two thousand five hundred thirteen) manats

2. Requirements and provisions for bidders

2.1. 2.1. Submitting an Investment Program in the amount not less than 10 000 000 (ten million) AZN indicating the investment trends, total amount and terms of investments reflecting the following issues for the purpose of development of the enterprise due to the restoration of its activity and the creation of new production areas:

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

2.1.2. proposals for the repair of existing equipment and technologies (considered appropriate), as well as the application of new equipment and technologies (including new production areas to be created);

2.1.3. proposals for creating of additional production areas in the enterprise;

2.1.4. proposals for renewal of infrastructure provision;

2.1.5. proposals for restoring and increasing the number of jobs (not less than 80), as well as social measures;

2.1.6. proposals for increasing the production and range of new import-substituting and/or export-oriented products;

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 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 joint-stock company (not less than 9 500 000 (nine million five hundred thousand) 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. Documents to be submitted by bidders

Applicants must submit the following documents in order to participate in the competition:

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 document in the same amount (bank guarantee, surety agreement, pledge agreement, etc). The amount paid by the winner will be considered during the fulfilment of Article 2.3, however payment and guarantee letters of losers 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 TIN, as well as the duly certified order on the appointment of the chief;

- information reflecting the bidders activity;

- information on existing activity in the Republic of Azerbaijan audited financial reports of the last three years (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 and business activity;

- information on the bidder's 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.

If any of the documents or information required to participate in the tender can be obtained from the relevant government agency through the Electronic Government Information System, those documents or information are not required from the bidders. In cases where it is not possible to obtain such documents or information through EGIS, their submission is required from the relevant state agency upon request with the consent of the bidders or is provided by the bidders. Such documents will be considered by the Tender Commission accordingly.

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 shares of joint-stock company during 30 (thirty) calendar 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 shares of company:

- transfer of the proposed funds to the state budget during the period to be agreed in the contract;

- payment of the Company's salary and equivalent debts, within the period agreed in the contract;

- regulation of creditor debts of the Company within the period and appropriate rule to be agreed in the contract;

- payment of (8 850 AZN (including VAT)) service fee to the consulting company involved in connection with the implementation of this project within 30 (thirty) calendar days;

- 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, indicated in the Investment Program;

- creation of the number of jobs to be committed, but not less than 80;

- 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 Company, get acquainted with the 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 08 July 2024, 139 H.Aliyev avenue, Baku city, Nizami district, State Service on Property Issues under the Ministry of Economy, 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 08 July 2024 from 10:00 till 17:30 in the following adress specified in paragraph 4.2.

4.4. Tender proposals will be assessed on 09 July 2024 starting from 15:00 at the administrative building of the State Service on Property Issues under the Ministry of Economy.