The extension of General Motors' permits for UzAuto Motors is being considered as part of the company’s privatization strategy under development, State Assets Management Agency Director Sokhibjon Murodov said in an interview with Daryo.
According to him, the privatization processes for UzAuto Motors and UzAuto Motors Powertrain have already begun, but the companies are currently at the preparation stage. The State Assets Management Agency has hired international consulting firm Alvarez & Marsal, which specializes, among other areas, in the automotive industry, to develop the strategy.
Murodov said the consultant will not only develop the strategy but will also continue working with the agency during the future sale process as a partner and consultant. At the same time, the head of the agency rejected speculation that the privatization is being carried out in the interests of a specific investor.
“We have not even reached the stage of announcing the sale yet. We are currently only preparing the company for privatization. Conclusions can be drawn only when the strategy reaches the sale stage and we move to direct negotiations with investors”, he said.
According to Murodov, international practice involves several stages in the sale process: first, applications are collected from interested companies, followed by non-binding offers and, at the final stage, binding offers. Only after that can a specific group of potential buyers be identified.
Regarding the expiry of GM’s current license, Murodov said the parties continue to maintain “good cooperation” and that the issue of extending the relevant permits is being considered as part of the privatization strategy.
“This is also being taken into account. In other words, it is one of the areas covered by the privatization strategy”, Murodov said when asked about a possible extension of the license.
Context
In September, the State Assets Management Agency said the privatization of UzAuto Motors would be conducted openly and competitively. Any investor meeting legal requirements would be eligible to participate, with no preferences or priority rights granted to specific companies.
Preparations for the sale of UzAuto Motors have already begun under the approved privatization program. International consultant Alvarez & Marsal is conducting due diligence on UzAuto Motors and UzAuto Motors Powertrain.
The planned sale covers 99.7% of UzAuto Motors and 100% of UzAuto Motors Powertrain.
According to Avtostrada, the agreement between Uzavtosanoat and General Motors was signed in October 2017 for a 10-year term. Under the agreement, UzAuto Motors received a license to produce GM models, the right to use the Chevrolet brand and access to the company’s technologies. The agreement expires in 2027.
The English version of this material was generated with the assistance of AI translation tools and may differ slightly from the original text.
