According to the announcement published by the State Assets Management Agency on July 17 this year, Expression of Interest stage of the privatization process of the state share in the authorized capital of "Uz-Koram Company" LLC (hereinafter - the "Asset") has launched.

As reported previously, “Portfolio Investments” (hereinafter - "Consultant") was attracted as a privatization consultant to carry out the process of privatization of this state asset on the basis of the best international experience.

As part of the Asset’s privatization processes, complex marketing activities were carried out by Consultant, as well as sending investment teasers to potential investors. As a result, Consultant has received Expressions of Interest from 5 international and local investors by September 4, 2024.

All proposals received by the privatization Consultant and the State Assets Management Agency were analyzed for compliance with the following criteria:

• financial performance (confirmed by audited IFRS financial statements) and guaranteed ability to raise financing for a potential transaction;
• absence of any judicial, administrative, arbitration or other proceedings that might result in a ban on participation in the privatization process;
• compliance with Law of the Republic of Uzbekistan No. 660-II "On Counteraction of Legalization of Criminal Proceeds, Financing of Terrorism and Financing Weapons of Mass Destruction Proliferation";
• The applicant (in the case of a consortium, none of the members of the consortium) and none of its shareholders/participants must be a public company or a company with a public share in the share capital;
• Absence of participants (and all key associated persons) in the sanctions lists of the European Union, the United States and international development institutions, as well as a low probability of being included in such lists in the future.

As a result of in-dept analysis of the proposals received by Consultant in accordance with the abovestated criterias, proposals from 4 applicants were recognized as fully complying with the above criteria, as well as 1 applicant will not be passed to the next stage of the process due to failure to submit documents in accordance with the criteria established at this stage and to demonstrate sufficient financial resources to acquire the Asset. The Consultant will send an individual Process Letter to each of the 5 applicants on the results of this stage of the process.

Accordingly, 4 applicants who have successfully passed the Expression of Interest stage will be invited to participate in the next submission of Binding offers (BO) stage of the privatization process, and Process Letter with detailed information on this stage will be addressed to them.

Once applicants have signed a Non-Disclosure Agreement (NDA), they will be granted access to a Virtual data room (VDR) containing detailed information about the Asset, including historical and forecast financial performance, and other information prepared by the Consultant.

Binding offers (BO) for purchase of the Asset are accepted by Consultant until 18:00 (Tashkent time) October 16, 2024.

Moreover, before this deadline, the applicants are required to transfer not less than 1% of the amount of the proposed Binding Offer as a guarantee payment to the relevant account of JSC “Organization of Electronic Online Auctions” through their personal account in the electronic trading platform “E-auksion”. The personal account and payment account indicators opened on the electronic trading platform “E-auksion” will be sent to the participants by the Consultant through individual letters (Process letter) regarding the sales process.

At the same time, this guarantee payment is returned to the personal account of the applicant in case the applicant is not declared the winner, and in case of success - it is considered as part of the redemption payment.

The State Assets Management Agency expresses its gratitude to all applicants who showed interest in the privatization process and submitted proposals, and also expresses its confidence in further mutual favorable cooperation with applicants who successfully passed the "Expression of Interest" stage of the privatization processes.

DISCLAIMER

The State Assets Management Agency reserves the right to change the sequence of the privatization process or refuse to sell to any potential buyer(s) or negotiate with them at any time without explanation.

This announcement, or any part of its content, should not be taken as a form of obligation on the part of the State Assets Management Agency, “Portfolio Investments” in relation to the Asset sale, as one might assume in connection with the publication of this announcement. The State Assets Management Agency and “Portfolio Investments” reserves the right, in its sole discretion, at any time and in any respect, without assuming joint or individual responsibility:

(i) Change the deadline for submission of applications;

(ii) Follow different procedures with respect to different stakeholders and/or negotiate with one or more potential buyers within the schedule and procedure established jointly by the State Assets Management Agency and “Portfolio Investments”, to the exclusion of any other potential buyer(s) without prior notice;

(iii) Stop the sale process for any reason;

(iv) Stop all discussions and negotiations with any potential buyer(s) in relation to the Transaction at any time and without explanation.