Tashkent, Uzbekistan (UzDaily.com) — ALFA INVEST Insurance Company has won the tender to acquire 100% of the government stake in Tashkent New Palace LLC, which owns the Lotte City Hotel Tashkent Palace. This was announced by the Agency for the Management of State Assets.

The sale of Lotte City Hotel Tashkent Palace was conducted through an open auction, with the international consulting company KPMG serving as the privatization advisor and Deloitte providing an independent valuation.

The hotel is managed by the South Korean company Hotel Lotte CO., Ltd. under a management agreement signed in 2013.

During the privatization preparation process, the advisor received 15 expressions of interest (EOIs) from applicants in the CIS countries, South Asia, and Europe. Of these, 13 companies that met the established criteria were allowed to proceed to the next stage — submitting non-binding offers (NBOs).

After analyzing the submitted NBOs, 9 participants were invited to the final stage — submitting binding offers (BOs). Ultimately, three contenders submitted their BOs within the prescribed time.

The winner was ALFA INVEST Insurance Company, which offered the highest price of US$20 million for the property. The company met all the requirements for acquiring the hotel.

It should be noted that as part of the deal, the investor is obligated to coordinate any construction, repair, or renovation work with the Ministry of Construction and Housing and Communal Services of the Republic of Uzbekistan, as well as the Agency for Cultural Heritage, to preserve the architectural integrity of the building.

The proposed price exceeded the valuation set by Deloitte and was within the upper range of the indicative price calculated by KPMG.

The results of the privatization were approved by the State Commission for Privatization and Coordination of State Asset Privatization Processes.

ALFA INVEST Insurance Company is one of the leading insurance companies in Uzbekistan, offering a wide range of voluntary and mandatory insurance services. The international agency Moody's Investors Service has assigned the company a "B2" rating with a "stable" outlook.