Tashkent, Uzbekistan (UzDaily.uz) — Companies from the United States, South Korea and China have expressed interest in acquiring UzAuto Motors.
Uzbekistan’s State Assets Management Agency (SAMA) does not intend to favour any potential buyer and plans to conduct the privatisation through a competitive process, SAMA Director Sohibjon Murodov said at a press conference on 8 October.
According to Murodov, preparations for the privatisation of UzAuto Motors have been underway for approximately two years.
One of the key steps was the engagement last year of international consulting firm Alvarez & Marsal. The company was selected through a competitive process to conduct an international audit, prepare analytical materials and carry out the work required to prepare the automaker for sale.
Murodov said Alvarez & Marsal was chosen because of its experience advising on major international transactions in the automotive industry and its team of specialised professionals.
However, interest expressed by specific companies does not mean they will necessarily acquire UzAuto Motors. Murodov stressed that submitting an application or publicly declaring an intention to purchase the asset gives a potential investor no guarantee of success.
The head of SAMA said the future transaction would not be structured around a buyer selected in advance.
The government intends to give investors access to the privatisation through an international competitive process.
The agency is currently developing the privatisation model and determining the timeline for moving to subsequent stages. An international adviser responsible for organising the bidding process will then be engaged.
The next stage will involve an independent international valuation of UzAuto Motors and comprehensive due diligence of the asset. Once the preparatory work is complete, SAMA plans to announce the launch of the privatisation process through international communication channels and media outlets in Uzbekistan and other countries.
Potential investors will first be invited to express their interest. The process will then proceed to the submission of non-binding offers, followed by binding bids.
Negotiations are expected to be held with investors that submit the most attractive offers.
The terms of the transaction will take into account the government’s requirements, including licensing conditions and their validity periods. The outcome of the privatisation will be announced after all required procedures have been completed.
In September, SAMA said the sale of UzAuto Motors would be conducted openly and competitively.
Under the previously outlined approach, any investor meeting the requirements of the law will be eligible to participate, with no preferences or pre-emptive rights granted to individual bidders.
Preparations for the privatisation are being carried out under an approved programme. International adviser Alvarez & Marsal is conducting comprehensive due diligence on UzAuto Motors and UzAuto Motors Powertrain.
The transaction is expected to involve the sale of 99.7% of UzAuto Motors and 100% of UzAuto Motors Powertrain.
