Mobiuz privatization enters final stage with 10 qualified bidders

The State Assets Management Agency (SAMA) has received 10 non-binding price offers for the acquisition of Universal Mobile Systems (Mobiuz), the agency’s press service reported.

Public bidding for a 100% stake in the mobile operator began in June. At the first stage, consultants from Rothschild & Co and KPMG received expressions of interest (EoI) from 15 potential bidders, including both local companies and investors from the United States, Europe, the Middle East, the South Caucasus, and East and Central Asia.

During the non-binding offer (NBO) phase, the consultants continued accepting EoIs from additional potential investors. As a result, one more foreign company submitted an application and was approved to participate in the bidding process.

Out of 16 initial contenders, 10 submitted non-binding offers by the October 15 deadline. These companies have advanced to the next stage – the submission of binding offers (BO).

To prepare their binding offers, investors will gain access to a virtual data room and detailed analytical reports on Mobiuz’s financial, tax, and legal performance. In addition, representatives of the bidders will be able to visit Mobiuz facilities in person to become familiar with the company’s operations.

Before submitting binding offers, the consultant will provide participants with an agreement outlining the key terms of the acquisition and future operations of the company. Binding offers will be accepted until 23:59 Tashkent time on December 19.

About Mobiuz

Universal Mobile Systems, operating under the Mobiuz brand, provides mobile voice and internet services using GSM, UMTS, and 4G LTE technologies. The company’s net revenue for 2024 amounted to UZS 2.086 trillion, and it serves 7.8 million subscribers.

Mobiuz was established based on an agreement between Uzbekistan and Russia’s MTS, but the Russian operator sold its stake in 2016. In 2018, ownership of UMS was transferred to the state fund Digital Trust, and after the fund’s dissolution in 2021, control passed to the Ministry of Digital Technologies (Mininfocom).

President Shavkat Mirziyoyev included the privatization of UMS in a program approved in spring 2022. A few months later, SAMA launched the search for consultants to oversee the sale.

In April this year, the president signed a new decree on the privatization of state assets, including UMS. Shortly before that, SAMA Director Akmalhon Ortikov announced plans to soon put the operator’s stake up for “international open bidding.”

According to Bloomberg, Uzbekistan expects to raise around USD 300 million from the sale of Mobiuz. By mid-July, the asset had already attracted interest from potential investors in Qatar, Saudi Arabia, Azerbaijan, and Europe, the agency’s sources noted.