Investors Invited to Privatize Baku Factory of Household Air Conditioners

The State Committee on Property has once again put up 90.3% of the shares of Baki Kondisioneri for investment competition. The company producing air conditioners has been idle for about ten years.

The requirements to the applicants have not changed. The main of them is the establishment of the production of industrial and household air conditioners that meet modern requirements.

In addition to the investment program, applicants must take the obligation to transfer not less than 950 thousand mantas to the state budget. In addition, the winner has to pay the debt on wages and similar payments to employees totaling 938.4 thousand manats.

Currently, Baki Kondisioneri has 290 employees registered. Over the past 3 years, the number of employees decreased by 168 persons. In the process of the privatization of 15% of the shares 1,317 workers purchased 9.7% of the shares.

In 2013 the State Property Committee with the assistance of the German Society for International Cooperation drafted a program for restructuring and pre-privatization rehabilitation of Baki Kondisioneri. However, the essence of this program is not reported.

Note that, despite the legislation, the State Property Committee does not disclose information about the land area and the characteristic structures of JSC Baki Kondisioneri. According to Turan, company has about 13 hectares of land.

Shares of Baki Kondisioneri have been offered to investors since 2004 and at least 4 competitions were announced. In none of them the official announcement of the results was ever published.

The authorized capital of Baki Kondisioneri is 1,926,000 manats. The commitments of the JSC amounted to more than 4.5 million mantas as of August 1. The accounts receivable were 251.4 thousand manats. ----08B—