On the November 16th, 2012 during the VII Belarusian Investment Forum between the Ministry of Economy, National Agency of Investment and Privatization and consortium of companies Ernst & Young FLLC, Ernst & Young Legal Services and Law Group Argument (Belarus) was signed a Contract on providing advisory services on strategic investors attraction to OJSC “Minsk Margarine Plant” and OJSC “Konfa”.
According to the contract in the frames of the consortium the services will be performed by Ernst and Young foreign experts from its offices in Russia, Ukraine, Poland and Lithuania.
The expert team of the consortium will be headed by Davron Rustamkulov – the Partner of Ernst and Young CIS B.V., who has a significant experience in similar projects in Kazakhstan, Tajikistan and Azerbaijan. In some cases the contracts were accomplished with assistance of World Bank, which at the present moment assists the National Agency of Investment and Privatization with Pilot project implementation in Belarus.
The work of Financial Advisor, as it follows from signed contract, will consist of two stages.
During the first (preparatory) phase the experts will collect and analyze the information about the companies. This phase includes investment risk analysis, valuation of the state-owned shares based on Belarusian standards and international accepted methodology, assessment of the market interest in SOEs, developing privatization strategies: recommendations on actions to be taken to improve the attractiveness of SOEs and developing a strategy for the sale of the SOEs, including social assets management strategy.
At the second stage (implementation), after the strategy approving in accordance with procedures, established by Belarusian legislation, Financial Advisor will assist the Agency in organizing large-scale marketing campaign, aimed to maximize awareness of all potential strategic investors, both in Belarus and abroad.
Financial advisor will assist the Agency in launching and managing the bidding process, managing and leading negotiations with strategic investors, supporting the final negotiations and closing.
The conclusion of a shares and sale purchase deal for both companies is planned to be held in Q1 2013.
Reference:
5 consortiums submitted proposals to provide advisory services on strategic investors attraction to OJSC “Minsk Margarine Plant” and OJSC “Konfa”.. While considering the proposals the Evaluation Committee took into account such criteria as the experience of the candidates in holding of the similar deals, the proposed way of working with the companies, as well as experience in general and qualification of the employees, nominated for participation in the project. The Evaluation Committee was formed from representatives of the Ministry of Economy, the Ministry of Finance, State Property Committee and the Agency.
OJSC “Minsk Margarine Plant” and OJSC “Konfa” are in the list of eight companies selected for Pilot Privatization Project.
The Pilot Privatization Project is aimed to attract strategic investors and is implemented by the National Agency for Investment and Privatization on behalf of the Ministry of Economy with the support of the World Bank. The aim of the privatization program is to implement a small scale case-by-case privatization program in accordance with international best practices with the participation of widely known Financial Advisors (investment banks or consulting companies).