Uzbekistan is set to divest its stake in two state-owned lenders as part of an ongoing privatisation process.

The State Assets Management Agency of the country will dispose 100% equity stake in Poytaxt Bank and UzAgroEksportBank through an open tender process.

The sale will be conducted in a way to gain maximum value and improve the financial stability of the banks.

Deloitte and Grant Thornton were appointed respectively as privatisation consultants to enable the transactions.

As agreed, both the divestment procedures will be designed as competitive tender process. All interested parties can submit their applications, following which, a prequalification process will short list the bids.

Subsequently, the participants will sign a non-disclosure agreement (NDA). They will also submit a non-binding indicative offer after assessing information about the bank.

The state agency will then select the qualifying Stage 3 participants with the consultant. The shortlisted participants will also gain the opportunity to conduct own detailed due diligence on the bank and its operations.

Then, they can submit the binding offers, receive a draft sale and purchase agreement and start direct negotiations with the seller.

The seller will select the winner based on negotiations and the transaction will be concluded based on local laws.

Poytaxt Bank was established as a joint-stock company and provides commercial banking services. It includes forex transactions, consumer banking and loans and guarantees.

UzAgroEksportBank offers financing and development of export production of agro-industrial products. The operations include transactions with securities and foreign currency and payments with other jurisdiction among others.