As previously reported, in accordance with the relevant privatization programs, the State Assets Management Agency has launched an open sales process for 35.0% state share in "Uztemiryolcontainer " JSC (hereinafter - the Enterprise) with the involvement of the consulting company "Alkes Research" as a privatization consultant.

As part of the privatization process, the Consultant conducted a large-scale marketing campaign. In particular, investment teasers were sent to various investors. As a result, 6 Expression of Interest applications were received from local and international investors from the countries of CIS, Arab, South-East Asia and Europe.

In turn, 5 applicants meeting the criteria previously established at this stage were invited by the Consultant to participate in the next stage of the privatization process - submission of Binding Offers (BO).

Within the framework of this stage, a Non-Disclosure Agreement (NDA) was signed, as well as given an opportunity to analyze comprehensive analytical reports (due diligence) on financial, tax, legal and environmental activities of the Enterprise prepared by the Consultant and placed in the Virtual Data Room (VDR), as well as an opportunity to meet with the management body of the Enterprise.

As a result, 3 applicants submitted their Binding Offer (BO) within the deadline.

“COTTON LOGISTICS” LLC, which offered the highest price offer, was recognized as the winner of the sales with the condition to pay the redemption value in the amount of 200 billion UZS.

In the future, the buyer plans to digitalize the business processes of the Enterprise, effectively use the transit potential of the Republic, reduce tariffs and transportation costs, as well as implement modern corporate management systems to ensure sustainable development of the Enterprise.

It should be noted that the Buyer's offer is located in the upper part of the indicative price range calculated by the Consultant and exceeds the estimated value of the Enterprise.

The results of the Enterprise privatization were approved by the relevant decision of the State Commission for privatization of state assets and coordination privatization processes.

It is worth noting that, in accordance with the relevant privatization programs, a public offering of 4% shares of "Uztemiryolcontainer" JSC on the local stock market is planned within the framework of the "People's IPO" program.

For reference: “COTTON LOGISTICS” LLC is one of the largest transport and logistics companies in Uzbekistan with a cargo turnover of over 1 million tons and owns 480 wagons in its rolling stock. The company also manages over 1,000 units of rolling stock.