Japan buys Mongolia's Largest Cashmere producer

Moninfo reports:The winners
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.

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