In line with privatization initiatives, the Uzbek government has successfully concluded the privatization of Biokimyo, transferring 51% of the state block of shares in the company's authorized capital. The privatization process, managed by consulting firm Abrau Capital, attracted significant interest from potential investors and culminated in the selection of "Mega Comfort Business" as the winning bidder.
Abrau Capital was engaged as the privatization consultant through a competitive selection process. The consulting firm undertook extensive marketing efforts on both local and international fronts, employing strategies such as investor sounding and leveraging its wide network to promote the opportunity. This approach resulted in three Express of Interest requests from investors.
To ensure a transparent and legally compliant process, the received proposals underwent thorough examination. This scrutiny aimed to identify any administrative, arbitration, or legal issues that could hinder applicants from participating in the privatization. Additionally, a check was conducted to ensure that the applicants were not listed in the sanctions registers of major international entities, including the European Union and the United States.
The next stage involved inviting all eligible applicants to submit Binding Offers (BO). At this point, applicants signed a Non-Disclosure Agreement (NDA) and gained access to comprehensive due diligence reports covering the financial, tax, legal, and environmental aspects of Biokimyo. These reports were meticulously prepared by Abrau Capital and made available in a Virtual Data Room (VDR). Applicants were also given the opportunity to engage with the management of the enterprise and familiarize themselves with its operations.
Among the competing offers, "Mega Comfort Business" emerged as the frontrunner, presenting the highest-priced offer. The offer, amounting to UZS 118bn (around $9.6mn), demonstrated the buyer's commitment to ensuring the stable development of Biokimyo JSC in the future. Importantly, the offer fell within the range of indicative prices calculated by the consultant and exceeded the estimated value of the enterprise determined by an independent appraiser.
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