Agreement Reached on the Privatization of the State Share in the Charter Capital of “Avto Climate Control” LLC

Portfolio Investments is pleased to announce that an agreement has been reached on the privatization of 100% of the state share in the charter capital of “Avto Climate Control” LLC. We acted as the Consultant for the privatization process, providing full advisory support at all key stages of the transaction.

As part of the privatization, the Consultant carried out an extensive marketing and promotional campaign: investment teasers were prepared and distributed to potential investors, a virtual data room was organized, and access to comprehensive analytical materials was provided.

As a result of the campaign, Expressions of Interest were received from 4 investors. Following the preliminary selection, all applicants who met the established criteria were invited to the next stage — the submission of Binding Offers.

At the Binding Offer stage, Non-Disclosure Agreements (NDAs) were signed, access was granted to comprehensive due diligence reports covering the financial, tax, legal, and environmental aspects of the Asset, and meetings were organized with the company’s management.

By the established deadline, 3 participants submitted their Binding Offers. The winner of the tender was “Best Pipe and Parts” LLC, which proposed the highest price — UZS 230 billion. In accordance with Article 31 of the Law “On the Privatization of State Assets,” the Buyer will make an initial payment of 35% of the purchase amount within one month from the date of signing the relevant documents.

The Buyer has undertaken the following commitments:

• to maintain the main type of activity of the Asset for at least 10 years;

• to ensure compliance with licensing agreements for technical support with the supplier approved by General Motors (USA) — the licensor of the products;

• to comply with the requirements and restrictions set forth in the Main Alliance agreement on the use of General Motors technological equipment, as well as other applicable agreements.

The Buyer’s proposal is at the upper end of the indicative price range calculated by the Consultant and exceeds our valuation of the Asset.

The results of the privatization procedure have been approved by the State Commission on Privatization and Coordination of the Privatization of State Assets.

Portfolio Investments expresses its gratitude to all participants in the privatization process. 

Portfolio Investments

Contacts: info@piamg.uz | +998 71 267 7575