Uzbekistan's State Assets Management Agency (UzSAMA) has finalized the sale of a 100% stake in Poytakht Bank to Bond Investments Limited, a prominent investment entity based in the United Arab Emirates, in a transaction valued at $10mn.
The agreement comes after an extensive evaluation process led by UzSAMA and international consultant Deloitte, following the termination of a previous agreement with Expobank of the Russian Federation due to geopolitical constraints. According to UzSAMA, Bond Investments Limited LLC's offer surpassed both competing bids and the assessed value determined by international appraiser KPMG.
Bond Investments Limited, part of the Das Holding group, distinguished itself through its robust financial proposal and strategic vision for Poytakht Bank. The UAE-based investor, known for its rapid growth and diversified business portfolio across the Middle East, has expressed intentions to leverage its experience in establishing successful banks, including Islamic and digital banks, within Uzbekistan.
"We are committed to enhancing Poytakht Bank's infrastructure with cutting-edge mobile and digital financial technologies," stated a spokesperson from Bond Investments Limited.
The investor has already devised a comprehensive development plan aimed at modernizing operations and expanding services in Uzbekistan's banking landscape.
The transaction remains subject to approval from the Central Bank of Uzbekistan, ensuring compliance with local regulatory frameworks. Bond Investments Limited and its affiliates have been confirmed to be clear of any sanctions imposed by major international financial bodies, reinforcing the legitimacy of the acquisition.
Uzbekistan started privatizing state-owned enterprises in 2019 with decrees aimed at transitioning to a market-driven economy. President Shavkat Mirziyoyev launched a privatization campaign in 2020 to accelerate this shift as part of his reform agenda. Since 2016, Mirziyoyev has worked to open Uzbekistan's once tightly regulated economy to global investors under the vision of "New Uzbekistan."
In 2020, the government committed to privatizing 620 state-owned enterprises, including Uzbekneftegaz and the Navoi Mining and Metallurgical Company, which operates the Muruntau gold mine. This illustrated Uzbekistan's determination to embrace market reforms.
By 2021, UzSAMA oversaw rapid privatization, achieving milestones like fully privatizing the cotton sector and progressing towards privatizing wheat production by 2022. The Coca-Cola bottling plant was privatized by the Turkish CCI Group, reflecting the government's commitment, alongside over $250mn in deals at a September 2021 economic forum.
In December 2022, Uzbekistan finalized the privatization of Ipoteka Bank, with OTP Bank acquiring 75% of its shares, marking a significant step in privatizing the banking sector. Efforts also extended into real estate, including the privatization of assets like Hotel Uzbekistan.
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