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 paragraph 4.2 of the Presidential Order No. 1003 dated July 19 2016, “On some measures to accelerate the privatization of state property and increase the efficiency of its management”, 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 "Zabrat Machinery Plant" Open Joint Stock 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 November  2025)

 

Legal address:                                                         Baku city, Sabunchu district, 1st Zabrat settlement, N.Zeynalova street, 196

 

Main activity of the Company:                              production of oilfield equipment and spare parts for them

 

Share capital:                                                           5 325 417 (five million three hundred twenty five thousand four hundred seventeen) manats

 

Total number of shares:                                        
3 550 278 (three million five hundred fifty thousand two hundred seventy-eight) units

 

Type of shares:                                                       book-entry registered share

 

Nominal value of one share:                                 1,5 manats

 

Quantity of shares offered for sale at               3 550 278 (three million five hundred fifty thousand investment tender:                                           two hundred seventy eight) units

 

  Total nominal value of shares offered for 

  sale at investment tender:                                      5 325 417 (five million three hundred twenty five thousand four hundred seventeen) manats

 

Characteristics of covered area

and buildings:                                                          characteristics of the buildings are indicated in the technical passport of the Company

 

Shares of joint company in other

enterprises:                                                              none

 

Intangible assets:                                            none

 

Year of operation:                                              1929

 

The ecological condition of the

joint stock company:                                         satisfactory

 

Number of employees:                                      33 people

 

Liabilities of the Company:                          951 839 (nine hundred fifty-one thousand eight hundred thirty-nine) manats

including:

 

- salary and equivalent debts                            93 811 (ninety-three thousand eight hundred and eleven) manats

 

- debts to the state budget                                  70 850 (seventy thousand eight hundred fifty) manats

                                                                                  

  - debts to extra-budgetary state funds:            740 393 (seven hundred forty thousand  three hundred ninety three) manats

                                                                                  

• debts to state enterprises for goods, 5 319 (five thousand three hundred and

works and services                                              nineteen) manats

 

- other debts:                                                   41 466 (forty-one thousand four hundred

       sixty six) manats

                                                                                    

Receivables:                                                   none

 

2. Requirements and provisions for bidders

 

2.1. Submitting an Investment Program in the amount not less than 4 000 000 (four million) AZN indicating the investment trends, total amount and terms of investments reflecting the following issues in order to ensure the operation of the joint-stock company as a fully-fledged production enterprise through the restoration and expansion of its activities:

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

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

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

2.1.4. proposals for renewal of infrastructure provision;

2.1.5. proposals for the improvement of the territory of the joint-stock company in accordance with modern standards;

2.1.6. proposals for the creation of new jobs in the joint-stock company by establishing                         a production enterprise (not less than 100);

2.1.7. A proposal for the amount of up to 5% of the proposed investment amount to be transferred to the account in the form of cash and its use.

2.2. Proposals on payment to be paid to the state budget for the purchase of the shares of                joint-stock company (not less than 2 850 000 (two million eight hundred and fifty 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 250 000 (two hundred and fifty 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 2.2, 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:

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

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

-     payment (including restructuring) of the company's debts to the state budget and extra-budgetary state funds (SSPF, UİF, CMİF) within the period agreed upon in the contract;

-     payment of (8 260 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 100;

-     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 15 December 2025, 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 15 December 2025 from 10:00 till 17:30 in the following adress specified in paragraph 4.2.

 

4.4. Tender proposals will be assessed on 16 December 2025 starting from 15:00 at the administrative building of the State Service on Property Issues under the Ministry of Economy.