EY Deals

June 2024

EY provided advisory services to MvM Group for the acquisition of a monetary stakes in the Production Sharing Agreement for the Shah Deniz offshore gas-condensate field in Azerbaijan

On June 5, MVM Group announced its agreement to acquire of a 5% stake in the Production Sharing Agreement for the Shah Deniz gas-condensate project in the Azerbaijani sector of the Caspian Sea, as well as a 4% stake in Azerbaijan Gas Supply Company Limited (AGSC).

MVM Group is a 2nd largest power company in Hungary, and 4th in Central Europe, that implementing the operating country’s energy strategic targets through its successful and competitive activities. The Group provided supplementary services in IT, telecommunication, financial and security field.

The Shah Deniz is one of the world’s largest natural gas-condensate fields, which facilities can produce up to 29 billion cubic meters of natural gas and 60 million barrels of condensate annually. The field has significant hydrocarbon reserves and has been producing reliably and steadily for almost 20 years.

Azerbaijan Gas Supply Company Limited (AGSC) is an exclusive entity for marketing and selling natural gas from the Shah Deniz field.

The acquisition of a stake in the Shah Deniz gas field will allow MVM Group cooperate with SGC and leading global energy companies such as BP, Lukoil, TPAO and NICO in the unincorporated joint venture.

EY’s local financial due diligence and tax teams supported the MVM Group in this transaction, leveraging our extensive experience in PSA contracts, comprehensive financial and tax buy-side due diligence, along with SPA advisory services. Our teams worked with international consulting firms and investment bankers, ensuring a smooth process through regular monitoring and weekly discussions about the operational transition post-transaction.

The deal was carried out by EY professionals:

• Csaba Horvath and Krisztina Papp, SaT Hungary
• Amangeldy Mussayev, Leyla Salahova, Ilmira Kenzina-Karashova, SaT Central Asia and Caucasus

February 2024

EY advised the subsidiary of Nippon Paint Holdings on the acquisition of the Kazakhstani paint and adjacencies product manufacturer Alina Group LLP

Nippon Paint Holdings Co., Ltd. (hereinafter “NPHD”), a global leader in the paint and coatings industry, has reached an agreement to acquire a stake in the share capital of Alina Group LLP (“Alina”).

NPHD specializes in the production of automotive and industrial coatings, along with paints for architectural structures. The company operates in 45 geographies within four distinct business segments, namely Japan, Asia, Oceania, and Americas. Moreover, the company is the market leader in the paint and coating industry across Japan, Asia, Australia, and Turkey.

Alina, based in Almaty, is a diversified production group involved in the production, distribution, and sales of dry building mixtures and paints. Alina has emerged as a market leader in several countries in the Central Asia region.

The acquisition aligns with NPHD's business strategy of maximizing shareholder value, thereby enhancing the company's performance. It reflects the company's intent to strengthen newly acquired brands and capitalize on their potential synergies within NPHD. The industry expertise and dominant position in the dry-mix mortar market of the target will enable NPHD to enter the Central Asian paint and coating industry, and develop its growth strategy through horizontal integration.

EY successfully supported NPHD in this transaction with integrated buy-side services comprising of financial due diligence, tax due diligence, tax structuring, legal due diligence, transaction structuring as well as drafting and reviewing the transaction documentation, and other consulting services.

The project was carried out by EY professionals:

• Dinara Tanasheva, Tax and Law Leader for Kazakhstan and Central Asia
• Amangeldy Mussayev, Partner, Strategy and Transactions, Kazakhstan
• Doniyorbek Zulunov, Partner, Tax and Law, Kazakhstan
• Gaukhar Kudaibergenova, Director, Tax and Law, Kazakhstan

For more insights about EY’s buy-side transaction and M&A advisory services, click here: M&A advisory: Buy and integrate