Implementation of the Pilot Privatization Project

Belorussiya (Belarus), Belorussiya Respublikasi (bel. Respublіka Belarus) - Yevropa markazidagi davlat. Sharqiy Yevropa tekisligining gʻarbida joylashgan. Maydoni 207,6 ming km2. Aholisi 9 463 300 kishi (2013).

attracting the best strategic investors of either domestic or foreign origin able to ensure further development of the company,

generating revenues to the state budget as a result of successful sales,

minimizing the potential negative social impact of these transactions.

The privatization process is conducted through open and transparent international tenders with the participation of widely known Financial Advisors (investment banks or consulting companies) to increase trust of the international community to privatization processes in Belarus.

Eight small and medium sized State Owned Enterprises (SOEs) representing different industrial sectors have been identified for the first pilot privatization and assigned to the Agency to privatize -- Minsk Margarine Factory, Konfa, Medlplast, Belgazstroi, Avtomagistral, Construction and Assembly Trust No. 8, Baranovichi Reinforced-Concrete Structures Factory, Belsantechmontazh 2. These enterprises are divided into three groups.
In regard to the Pool of the food industry (OJSC "Minsk Margarine Plant" and OJSC "Konfa") as a Financial Advisor to the Agency acts the consortium “Ernst & Young FLLC”, “Ernst & Young Legal Services” and the law firm “Aleynikov and Partners”. World leading consulting company Ernst & Young together with Alejnikov and partners company supports us in the process from very beginning. The Agency are on the final stage of attracting strategic investors. The selected Strategic Investors for Konfa and Minsk Margarine Plant were invited to negotiations on the terms of the Share Purchase Agreement.
Regarding to the Pool of OJSC "Medplast" and OJSC "Belgazstroi" the Agency hired consortium of the companies such as Mattig Management Partners, Alfa Bank Belarus, Egorov, Puginsky, Afanasiev and Partners. The Agency have completed preparatory phase for privatization including due diligence, valuation in accordance to Belarusian and international standards.

By the end of 2013 the Agency launched the tender process and invited potential investors to submit their expressions of interest regarding to these enterprises. Shortlisted Potential Investors are invited to submit their final investment offers be the end of February 2014. The Agency expect to finalize tender process and sign the Share Purchase Agreement in April 2014.

All potential investors are invited to participate in the oncoming tender. You will find a short information concerning each privatization objects, see below.

14/B Bersona st.,

220050 Minsk, Republic of Belarus

375 17 200 81 75

In 1961 the Company was established as the Office of maintenance of Moscow-Minsk-Brest Highway (Avtomagistral). In 1974 the Production Office of repair and maintenance of highways of national significance “Avtomagistral” was established, since that moment the company has the possibility to conduct a production activity.

The Company obtains the following strengths:

• 
  centralization and distribution of labor, production and financial resources;
  
• 
  execution of contract works by mobile units;
  
• 
  extensive network of technological branches located in regions that have asphalt plants, lines of gravel enhancement and washing, storage tanks for binding substances enable the Company to carry out mobile road work throughout the country;
  
• 
  production of the most popular road building materials on their own.
  

The plant of reinforced concrete products was founded in line with the order of the Ministry of construction as of February 10, 1965.

OJSC Belsantekhmontazh-2 was created by an initiative of the Central Committee of the Communist Party of Belarus and BSSR Council of Ministers November 18, 1958 as an affiliation of the BSSR Ministry of Construction. The Trust incorporated three installation organizations and an industrial facility. Changing a production pattern continuously resulted in the change of the core business and name of the organization.

Over 18 years of Open Joint-Stock Company Construction and mounting trust No. 8 operations, the Company has built over 830 km. of public roads, including of national importance. It has built 224 thousands square meters of housing, as well as a number of sites for industrial purpose.

The Company participated in the construction of such major facilities as the highway Brest-Minsk-Russia border (M1/E30), Minsk and Moscow ring roads, the Republican Field for Testing of Automotive Vehicle and Tractors.

Characteristics	Description
Name of the company/info	Open Joint-Stock Company “Construction and mounting trust No. 8”. Address: 37 Kalvariyskaya str., 220073 Minsk. Web-site: www.smt8.open.by
Main activity	construction of roads, airfields and sports facilities.
Other activity	production of lumber, steel, asphalt concrete, mortar and concrete.
Personnel	643 employees.
Statutory fund	5 437 693.6 USD Part of Government is 99.79%

Financial information

Data	Year
	2009	2010	2011	2012
Net assets value, USD thnd	16 001.1	17 050.4	19 413.1	15 833
Revenue, USD thnd	28 544	27 506.7	30 902	64 343
Sales profit, USD thnd	137.2	576.2	729.8	4 135
Net profit, USD thnd	50.5	207.2	55.4	2 224
Sales margins, %	0.6	2.6	2.8	8.4
Receivables, USD thnd	1 449.9	1 673.6	1 018.4	7 813
Payables, USD thnd	1 418	2 903.3	2 908.9	8 494
Average wage, USD	490	519.8	497.3	720
Official Average Exchange Rate USD/BYR	2 792	2 978	4 623	8 336