Auction for the sale of “Railway Telecom” LLC

 

“Georgian Railway” LLC, a wholly state-owned enterprise in charge of the railway network and infrastructure in Georgia, is selling 100% of “Railway Telecom” LLC – its daughter company responsible for telecommunications and data communications. The investment package for sale includes the following major assets:

 

ØA 40 centimeter-long land strip along the entire railway network of Georgia for laying a fiber optic cable to provide internet and other type of communications to the population of Georgia (especially in the regions where access to such services is still very limited);

ØA special building of the Georgian Railway Telecom with the existing main fiber-optic backbone connected to it;

ØA 49-year contract with “Georgian Railway” LLC for the utilization of 5 square meter spaces in railway stations and on their roofs (can be used for placing the backbone supporting equipment or wireless distribution stations);

ØA pair of fiber in the existing backbone going along the main railway line of the country and connected to the partner networks of Azerbaijan, Armenia and Turkey;

ØA guaranteed opportunity to pay 5 times less than the market price for the cable laying works. The Georgian Railway Telecom has already concluded a contract with “Georgian Railway” LLC allowing to lay the new fiber-optic backbone in one year for approximately 5 times cheaper than the market price;

ØAn opportunity to be an exclusive supplier of fiber-optic communication services to the new residential and commercial development area to be developed on 70 hectares of land in the center of the Georgian capital Tbilisi. The land currently occupied by the railway lines will become an attractive development site once the Tbilisi Railway Bypass Project is completed within the next 3 years. The owner of “Railway Telecom” LLC will have an advantage in becoming a leading internet retailer of the area.  

 

Please, note that in 2008, “Railway Telecom” LLC was audited by KPMG. For the audit report and more information, please, visit the website of “Railway Telecom” LLC www.grt.ge (go through a very simple registration under Investor Relations) or contact us. Attached to this email, please, find the announcement of “Georgian Railway” LLC on the sale of the package as well as the list of strategic assets the package includes.

 

The open auction to sell the investment package will be held on November 16, 2009 at the “Georgian Railway” LLC headquarters in Tbilisi, Georgia. The starting price of the package is the equivalent of 14,144,800 USD in Georgian Lari (GEL). The deadline for submitting the application for the auction is November 16, 2009.

 

The Georgian National Investment Agency is ready to provide you with any assistance in applying for and participating in the auction. We will be happy to help you with all the pre- and after-auction procedures including due diligence, startup of business activities, etc.

 

Attached documents:

- GRT Announcement 

- Strategic Assets

 

15, Tamar Mepe Ave.

Tbilisi, 0112, Georgia

Tel: (+995 32) 56 31 59

Fax: (+995 32) 56 48 57

Email: dkemoklidze@railway.ge

Ministry of Economic Development of Georgia

12 Chanturia str. 0105 Tbilisi, Georgia

Phone: (+995 32) 433 433

Cell: (+995 95) 54 05 54

Email: mishak@investingeorgia.org