On August 20, 2022, the State Assets Management Agency (UzSAMA) announced the start of the Express-of-Interest stage of selling 100% state share in the authorized capital of "UzAuto Trailer" LLC (hereinafter referred to as the “Deal”)

As we reported earlier, Mosaic Financial (hereinafter referred to as the "Consultant") was selected as the lead consultant of UzSAMA for this deal.

At the same time, in order to determine the market value of this stake under the requirements of the Unified National Valuation Standard, following an open and transparent competition to attract appraisal organizations that have the right to carry out valuation activities in the Republic of Uzbekistan, the State Assets Management Agency attracted Pricewaterhouse Coopers as an independent appraisal organization. To date, the appraisal work is carried out by an independent appraiser in accordance with established procedure. 

As a part of the privatization process of "UzAuto Trailer" LLC (hereinafter referred to as the "Company"), The Consultant carried out large-scale marketing activities, including the distribution of investment teasers to potential investors. As a result, as of September 21, 2022, Express of Interest applications were received from six international and local investors from Uzbekistan, Europe, and the CIS region.

All applications received by the State Assets Agency and the Consultant are selected according to the following criteria:

• the absence of any judicial, administrative, arbitrate, or other proceedings, the result of which may be a ban on participation in the privatization process;
• compliance with the Law of the Republic of Uzbekistan #660-II (amended on January 15, 2019) “On countering the legalization of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction”;
• the applicant (in the case of a consortium, none of the participants in the consortium) and none of the persons associated with him/her are included in the sanctions list of the European Union, Great Britain, and the United States, as well as major international financial institutions (the World Bank, the European Bank for Reconstruction and Development, the Asian Development Bank).

Based on the results of a thorough study of the applications received by the Consultant, their compliance with the requirements of the above criteria was determined.

Accordingly, all applicants who successfully passed the Express of Interest stage were invited to participate in the next stage of the privatization process to accept non-binding offers (NBO), and accordingly a letter on the processes of this stage was sent to them (Process Letter 1).

The applicants who confirmed their participation in the process of accepting non-binding offers for the privatization process signed a Non-Disclosure Agreement (NDA) and were then granted access to the Virtual Data Room (VDR), which allowed them to review the Information Memorandum prepared by the consultant, which contains the information required to prepare indicative non-binding offers for the purchase of the Asset.

Till October 17 of the current year Mosaic Financial has received 6 non-binding offers (NBO) for the purchase price of 100% state share in the authorized capital of "UzAuto TRAILER" LLC. Applicants' offers have been analyzed by the Consultant to meet the requirements of this stage of the sales process, including their financial performance and solvency level, and based on the Consultant's recommendation, 5 applicants have been transferred to the next stage of accepting binding offers (BO).

Subsequently, these applicants will be invited to participate in the next stages of the privatization process and Mosaic Financial will send them a letter about the next stage of the process (Process Letter 2). Applicants who have confirmed their future participation in the privatization process will be given the opportunity to access the Virtual Data Room (VDR), which includes independent analytical reports (VDD) on financial, tax, legal and environmental performance of the Company prepared by the consultant, as well as the opportunity to meet with the management body with a direct visit to "UzAuto TRAILER" LLC.

Binding offers (BO) for the 100% state share in "UzAuto TRAILER" LLC will be accepted from Mosaic Financial till 18:00 (on Tashkent time) on November 25, 2022.

The State Assets Management Agency and international company Mosaic Financial expresses their gratitude to all participants, who have shown interest through participation in the stage of acceptance of non-binding offers (NBO), and also expresses confidence in further favorable cooperation with the applicants, who have successfully passed this stage of the acquisition of the Asset.