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, the State Service on Property Issues under the Ministry of Economy of the Republic of Azerbaijan announces investment tender for the sale of 30,03% share capital of “Ganja-Gannadi” Open Joint-Stock Company (hereinafter the “Joint-Stock 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 July 2024)

 

 Legal address:                                                           The Republic of Azerbaijan, Ganja city, 1 Shamkir highway

 Main activity of Joint-Stock Company:                      production of confectionery products

 Share capital:                                                             5 288 190 (five million two hundred eighty eight thousand one hundred ninety) manats

 Quantity of issued shares:                                         2 644 095 (two million six hundred forty four thousand ninety five) units

 Type of issued shares:                                             ordinary, book-entry registered share

 Par value of each share:                                          2 (two) AZN

 Quantity of shares offered for sale at

investment tender                                                      793 926 (seven hundred ninety three thousand nine hundred twenty six) units

Total nominal value of shares offered for sale

at investment tender:                                                  1 587 852 (one million five hundred eighty seven thousand eight hundred fifty two) manats

Characteristics of privatized building
and land plot:                                                             indicated in Privatization plan (issue prospectus)

                                                                                     of Joint-Stock Company  

Interest of Joint-Stock Company                                

in other entities:                                                         no                         

Intangible assets:                                                        no 
                            
Year of commissioning:                                             1973

The ecological condition of the                                  satisfactory

joint stock company:

Staff number:                                                             5 people

Liabilities of Joint-Stock Company:                           2 401 046 (two million four hundred one thousand forty six) manats

including:

salary and equivalent debts                            22 809 (twenty two thousand eight hundred nine) manats

debts to state budget                                     232 809 (two hundred thirty two thousand eight hundred nine) manats  

debts to SSPF                                                378 324 (three hundred seventy eight thousand three hundred twenty four) manats

debts to state enterprises for goods,              26 825 (twenty-six thousand eight hundred and  

work and services                                           twenty five) manats

bank credits                                                   570 000 (five hundred seventy thousand) manats                                                                                                                         

other debts                                                      1 170 279 (one million one hundred seventy thousand two hundred seventy nine) manats

Receivables:                                                  250 000 (two hundred fifty thousand) manats

 

 2. Requirements for bidders

 2.1 Submitting an Investment Program in the amount not less than 400 000 (four hundred thousand) AZN indicating the investment trends, total amount and terms of investments reflecting the following issues for the purpose of the development of the joint-stock company's activities
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;
2.1.3 proposals for creating of new production areas in the joint-stock company;
2.1.4 proposals for renewal of infrastructure provision;
2.1.5 proposals for restoring and increasing the number of jobs (not less than 10);
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 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 joint-stock company (not less than 400 000 (four 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 30 000 (thirty thousand) 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 prepared in a foreign language must be submitted together with the texts of those documents translated into Azerbaijani and duly certified. 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) 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 joint-stock company:

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

-   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;

-     payment of (5 310 AZN (including VAT)) service fee to the consulting company involved in connection with the implementation of this project within 30 (thirty) calendar days;

-     creation of the number of jobs to be committed, but not less than 10;

- 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 27 August  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 27 August 2024 from 10:00 till 17:30 in the following adress specified in paragraph 4.2.

4.4. Tender proposals will be assessed on 28 August 2024 starting from 15:00 at the administrative building of the State Service on Property