The State Assets Management Agency of Uzbekistan announced the sale of a 100% state stake in mobile operator MobiUz to a consortium led by US-based McKim and Company, including financial investors and technology partner JVR Enterprises LLC, for $351 million.
The privatization process involved international investment bank Rothschild & Co as strategic advisor, KPMG as financial advisor, and Deloitte as independent appraiser. The sale was widely promoted on international markets, with over 100 strategic and financial investors individually engaged through the advisors' global offices.
Information about the deal was covered by international media such as Bloomberg and Financial Times, and international roadshows were organized for investors. More than 15 investors from the US, Japan, Gulf states, Europe, and the Caucasus region participated, with 10 submitting initial price offers.
Potential buyers were provided with financial and legal due diligence prepared according to international standards. Subsequently, six participants submitted binding final offers (Binding Offer) to acquire MobiUz. According to the agency, participants were given the opportunity to improve their price offers in the final stage to maximize economic efficiency for the state.
At the conclusion of the auction, the consortium led by McKim and Company was declared the winner. Under the consortium's proposal, MobiUz was valued at $351 million. Additionally, the company plans to invest up to $500 million in developing telecommunications infrastructure.
The agency noted that the EV/EBITDA multiple of the transaction stood at 7.4x, indicating that the company was competitively valued compared to comparable deals and significantly exceeded the value determined by the independent appraiser.
The transaction is subject to approval from relevant regulatory authorities and the completion of required corporate and legal procedures.
For context, Universal Mobile Systems was established in 2014 as a joint venture between Russia's MTS (50.01%) and the Center for Radio Communication, Broadcasting, and Television (49.99%). In 2016, MTS sold its stake, and from 2018, the operator was fully owned by the Digital Trust fund. In 2019, UMS rebranded to Mobiuz.
Source: www.gazeta.uz