Companies from the United States, South Korea and China have already expressed interest in the privatization of UzAuto Motors, State Assets Management Agency (SAMA) Director Sokhibjon Murodov said at a press conference on October 8, Spot correspondent reports.
According to Murodov, the privatization process began around two years ago. Last year, SAMA selected international consulting firm Alvarez & Marsal through a competitive process to conduct an international audit, prepare analytical materials and help prepare the company for privatization.
Murodov said Alvarez & Marsal was selected because of its experience in major international transactions in the automotive industry and its team of specialists in the sector.
“American, South Korean and Chinese companies have expressed interest. But regarding this interest, I would very much ask you to make it clear to the public and to everyone concerned about the privatization of UzAuto Motors: if a company says today, ‘I want to buy this company,' it does not mean that we will sell it specifically to that company. That is out of the question,” the SAMA chief emphasized.
Murodov said the process would not be tailored to any particular company. The privatization is planned to be conducted through an open international tender. At the current stage, SAMA is developing the privatization scenario and determining when to move to the next stages.
The next step will be to select an international consultant to organize the tender. This will be followed by an international valuation of the asset and comprehensive due diligence.
SAMA will then announce the start of the process for investors through international channels, as well as local and foreign media. Potential buyers will be invited to express their interest, after which the process will proceed to non-binding and binding offers.
Negotiations will then begin with investors submitting the most attractive offers, taking into account conditions set by the government. Murodov cited licensing requirements and their validity periods among these conditions.
The sale process will be completed after the final agreement with the selected investor is announced.
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.
