Blocking Stake of Zagatala Tobacco Factory Sold for 12.4% of Nominal Value

The State Committee on Property put on an investment contest 30% of the shares of Zagatala Tobacco without conditions for maintaining the profile of the tobacco companies. Moreover, the shares of the company are offered for next to nothing.

The main part (70 %) of JSC Zagatala Tobacco was sold in the first program of privatization of state property in 1998. Following the announcement of the investment competition, the company has only two workers, which means it is disabled. SCP required submitting an investment program for the purchase and installation of new equipment, depending on the type of investors to the proposed activities of the enterprise. In addition, the applicants must submit a proposal for the transfer of AZN 35,000 for the purchase of 141,029 shares, which is 12.4% of their face value. These shares were previously exhibited at the money auction at 50 % of the face value.

Since 2008, the government changed the program of privatization of state property. According to the innovation, not sold on the cash auction 30 % stakes can be put on investment competition. So far, this method has sold stakes of 10-20 JSC.

The Zagatala tobacco factory was commissioned in two phases from 1973 to 1986. The land area and the characteristics of its buildings are not reported, contrary to the law on privatization. The authorized capital of the company is over 940 thousand manats.

With zero accounts receivable, the company has liabilities amounting to 75.8 thsd manat. Tender proposals are accepted until the 16th of December.

Lankaran is one of the leading areas of the country on tobacco growing. It accounts for more than half of the production of tobacco. According to the State Statistics Committee, for the 10 months of this year, the country produced 3,265 tons of tobacco, which is 1,000 tons less than in the comparable period of 2012. - 08D -