|Mongolia’s Largest Cashmere Producer Privatized|
of the tender to privatize the Gobi Cashmere Ltd., the largest cashmere
producer in Mongolia, were announced Thursday morning with the Japanese
Toshisoke Investment Bank and HS Security’s consortium outbidding the other
competitor by nearly US $350,000.
Just two consortiums competed in the open, international tender for the Mongolian state’s 73.47 percent equity interest (5,730,198 common shares) in Gobi Cashmere Ltd.
“We hope that Gobi Cashmere will increase its benefits year by year. Our consortium and the Gobi Company is working under an old relationship. We will invest in new techniques and management of Gobi. Gobi Cashmere Ltd. was originally established with Japanese Company support. We very happy to win this tender,” a consortium representative said immediately after the announcement.
The Japanese invested Toshisoke Investment Bank and HS Security’s consortium will pay US $13.85 million while the competitor, BIJ consortium, offered US$ 13.5 million for the financial proposal. The government had established a minimum asking price of US $12.2 million.
“The professional organizations which were working with Gobi gave real prices for the company. Indeed the State Property Committee also considers that the winning price is a fair and realistic amount for the state owned part of Gobi. The State Property Committee will now receive over MNT 2 billion more than the asking price. It is not bad,” B. Sukhbaatar, Chairman of the Registration and Monitoring Department of the State Property Committee told MonInfo Thursday at the announcement ceremony.
“The winner’s consortium put focused goals on the technical proposal that they would make Gobi’s products become a brand name and would be proud that Gobi’s products are goods of Mongolia,” said Sukhbaatar.
According to the winning consortium’s business plan they will invest US $12 million in the coming three years. The first year will be a smaller investment of US $2 million. Sukhbaatar commented that the winning proposal had a very detailed project plan far above the other participant.
“BIJ also gave a very good plan under their technical proposal. But they didn’t make very detailed plans like Toshisoke Investment Bank and HS Security’s consortium, especially related to wanting to brand products. The BIJ consortium’s proposal though was very detailed on improving workers’ social issues and investment issues,” said Sukhbaatar.
Even though three consortiums attempted to give the applications to compete for the tender of the privatization of Gobi, the Mon It consortium was late by one minute and their materials for the privatization were not accepted, according to statements by the State Property Committee.