Lawyers of Kosta Legal have successfully completed comprehensive pre-acquisition legal due-diligence on an industrial real estate complex in Tashkent. The due diligence was a part of a multi-million dollar transaction for the purchase and sale of a participating interest in one of the largest construction material plants operating in Uzbekistan.
A number of issues significantly complicated the due diligence investigation. According to the title documents, a vast land plot with numerous production facilities was privatised by the Uzbek government with the imposition of many investment obligations. One of our tasks was to confirm due performance of these investment obligations by the target. There was also a railway passing through the land plot that required obtaining specific permissions and complying with specific regulatory rules. Issues related to environment protection and the adjacency of residential areas were also touched upon during the analysis.
Our client was a major investment institution wishing to make a substantial equity investment into a company in the sector of construction materials, owned by an industrial conglomerate unifying a number of large industrial enterprises in Uzbekistan.