MINSK, 20 November (BelTA) – A consortium of companies led by Ernst & Young has been chosen to be the first financial advisor for a pilot privatization project in Belarus, representatives of the National Agency of Investment and Privatization of Belarus told BelTA.
The advisor was chosen at the 7th Belarus Investment Forum on 16 November 2012. A contract has been signed by the Economy Ministry, the National Agency of Investment and Privatization, and the consortium of companies IOOO Ernst & Young, SOOO Ernst & Young Legal Services, the legal group Argument. The contract provides for rendering services to attract strategic investors to OAO Minsk Margarine Plant and the Molodechno-based confectionery factory Konfa.
In line with the contract as part of the consortium Ernst & Young foreign experts will work from offices in Russia, Ukraine, Poland, and Lithuania.
The team of the experts will be led by Mr Davron Rustamkulov, Ernst & Young CIS B.V. Partner, who has many years of experience of working on such projects in Kazakhstan, Tajikistan, and Azerbaijan. In some cases deals were made using assistance of the World Bank. At present the bank provides assistance to the National Agency of Investment and Privatization in implementing the pilot project in Belarus.
The experts will analyze the state of companies, including investment risks, the financial status, and the market position and will work out several ways to attract investors, including strategies to manage social assets.
After that, once the chosen strategy is okayed, the advisor will have to organize a large-scale marketing campaign to raise the awareness of potential investors in Belarus and abroad. The advisor will be left in charge of the negotiations up to the signing of the deal and the signing of the contract to sell shares.
As part of the contract there are plans to strike deals to sell packages of shares of the two companies in Q1 2013.
BelTA has been told that five consortiums had been vying for the financial advisor position. The evaluation committee that comprised representatives of the Economy Ministry, the Finance Ministry, the State Property Committee, and the National Agency of Investment and Privatization took into account several criteria. In particular, the experience of carrying out similar deals was taken into account as well as the suggested form of cooperation with the enterprises, experience and qualification of the personnel, who were suggested for the project.
The pilot privatization project is aimed at introducing the latest international practices in Belarus.
The companies OAO Minsk Margarine Plant and Konfa are one of the eight companies shortlisted for the pilot privatization project. The National Agency of Investment and Privatization is busy implementing the project in line with the relevant Council of Ministers resolution and with assistance of the World Bank.
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