Prime TASS
October 10

The Euro Asian Development Corporation (EADC) of the U.K. has paid U.S. $8.3 million for a 51% state stake in Uzbekistan's Uzkabel, one of the largest cable and conductor producers in the CIS, an Uzkabel official told Prime-Tass Thursday. The EADC was the only bidder for the stake at a closed auction in July.

Prior to the auction, six companies including Russian cable producer Samarakabel, were interested in the stake, but the EADC offered the highest price, Uzkabel said.

The EADC also concluded an agreement with Uzbekistan's State Property Fund to invest about $15 million in a technical upgrade of Uzkabel and in the company's capital.

The upgrade program is expected to be complete by 2010 and to cost $14.7 million, the company said. The Uzbek government may transfer an additional 13% stake in trust to the EADC, Uzkabel said.

Austria's Raiffeisen Investment, the consultant on the privatization deal, estimates that Uzkabel is worth $18-$22 million. Uzkabel's annual production capacity amounts to 50,000 tonnes of copper wire rod.

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