As previously reported, in accordance with the relevant privatization programs, the State Assets Management Agency started an open sales process for 100% state share in "Uz-Koram Kompani" LLC (hereinafter - the Enterprise) with the involvement of the consulting company "Portfolio Investments" 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, Expression of Interest applications were received from 5 local and international investors from the countries of CIS, West and South-East Asia and Europe.
In turn, 4 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), as well as 1 applicant was not admitted to the next stage of the process, as it did not submit the documents corresponding to the criteria established at this stage and proof of sufficient financial resources for the purchase of the Asset.
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.
In the given timeframe 2 applicants submitted their Binding Offers (BO).
As a result, “Centrum Aviation FZCO” (UAE), 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 24 million USD.
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.
In addition, the Buyer committed to maintain the core business of the Enterprise for a period of at least 10 years, strict compliance with license agreements for technical support with the supplier approved by “General Motors” (USA) - licensee of the products, as well as the requirements and related restrictions established in the agreement of the Main Alliance for the use of technological equipment related to the technologies of General Motors.
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.
For reference: “Centrum Aviation FZCO” was established as part of Centrum Holding. The main activities of the company include air cargo transportation, brokerage services in the field of aviation trade and aircraft leasing. In Uzbekistan, the company provides aviation services under the “Centrum Air” brand.
