What is known about the privatization of major assets in Uzbekistan
The State Assets Management Agency of Uzbekistan (SAMA) continues preparations for the privatization of a number of large state-owned enterprises and facilities. In particular, possible options for selling the state stake in UzAuto Motors, the financial recovery of Navoiyazot, and the further development of Uzbekistan Pochtasi are being worked through. This was announced by the Director of SAMA, Sokhibjon Murodov.
What is known about the privatization of major assets in Uzbekistan
According to the State Assets Management Agency (SAMA), this year it is planned to put up for auction state shares in 84 enterprises, 1,242 real estate properties, and 8 thousand hectares of land. Another 85 state-owned enterprises are intended to be either reorganized or considered for termination of their activities.
The agency also commented on the situation with oil fields and the Fergana Oil Refinery, and spoke about changes in the procedure for disclosing information on privatization deals and new conditions for the sale of state assets.
UzAuto Motors: a privatization scenario is being prepared
According to SAMA, preparations for the privatization of UzAuto Motors started about two years ago. Last year, the agency engaged the international consulting company Alvarez & Marsal on a competitive basis to conduct an international audit, prepare analytical materials, and support the process of preparing the enterprise for privatization.
According to SAMA Director Sokhibjon Murodov, interest in the asset was shown by companies from the United States, the Republic of Korea, and China. At the same time, the mere fact of interest does not mean that these specific companies will become potential buyers.
"This is an open international sale. The agency is currently developing a privatization scenario. An international consultant needs to be selected, and an asset valuation and due diligence must be conducted. Then the information will be disseminated through international and local channels. Investors will be able to submit a request for an expression of interest. Next comes the screening of participants, non-binding, and binding offers. The sale will take place taking into account the conditions of the state, including requirements for licenses and existing agreements,"
the head of SAMA reported.
Thus, several stages remain to be completed prior to the transaction, including the selection of an international consultant, valuation of the enterprise, due diligence, and the selection of prospective buyers. Specific deadlines for completing the preparation and the sale itself were not named in the agency head's comments.
According to Murodov, the list of assets scheduled for privatization may change as agreed with the Presidential Administration. After the sale, further work with the facility will fall under the responsibility of local khokimiyats (city/district administrations).
"Navoiyazot": financial recovery first
According to SAMA, preparatory work continues regarding the chemical enterprise "Navoiyazot". Taking into account the location of the enterprise and the existing infrastructure around it, there are plans to create a large chemical cluster. In parallel, work is underway on the financial recovery of the enterprise. The timeline for potential privatization has not yet been named.