In line with relevant privatization programs, it has been decided to sell 87.47% of the state block of shares in the authorized capital of “Uzenergoengineering” (the Enterprise) to “O’zbekenergota’mir”, UzSAMA reports. To facilitate this process, Mosaic Financial (the Consultant) was engaged based on competitive selection.
UzSAMA considers that "O'zbekenergota'mir" possesses the requisite capabilities to guarantee the steady progression of "Uzenergoengineering" activities moving forward. Furthermore, it has the potential to establish comprehensive production processes. It is also noteworthy that ‘Uzbekenergotamir’ has fully adhered to the stipulated requirements for privatization.
Marketing and investor engagement
The Consultant undertook extensive marketing activities both locally and internationally. This included sending investment teasers to potential investors and leveraging the Consultant’s broad network. As a result, two expressions of interest were received from investors.
Review of applications
The received applications underwent a thorough review to ensure that there were no administrative, arbitration, or other legal proceedings that could prohibit the applicants from participating in the privatization process. Additionally, it was confirmed that they were not included in the sanctions list of the European Union, the United States, and major international financial institutions.
Submission of binding offers
All applicants were invited to the next stage of the privatization process - the submission of binding offers. At this stage, the applicants signed a Non-Disclosure Agreement and were given access to comprehensive due diligence reports on the financial, tax, legal, and environmental activities of the Enterprise. These reports, prepared by the Consultant, were placed in the Virtual Data Room (VDR). Applicants were also allowed to organize meetings with the management of the Enterprise and to familiarize themselves with its activities.
Finalization of privatization process
“O’zbekenergota’mir” emerged as the winner by proposing the highest bid among all participants. Their bid, valued at UZS 44bn ($3.6mn), fell within the Enterprise’s indicative price range as calculated by the Consultant. Moreover, their offer exceeded the estimated value of “Uzenergoengineering” as determined by an independent evaluator. The company met all the established requirements for the acquisition of 87.47% of the state block of shares in the authorized capital of the Enterprise.
The results of the privatization of the enterprise have been agreed upon by the relevant decision of the State Commission on the privatization of state assets and coordination of privatization processes.
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