US consortium acquires Uzbek mobile operator MobiUz for $351 million

The State Assets Management Agency has announced the completion of an international open tender for the sale of a 100% state-owned stake in Universal Mobile Systems LLC, which operates under the MobiUz brand.

Photo: Mobiuz

To ensure transparency and adherence to global practices during the privatization process, the agency engaged Rothschild & Co as the strategic consultant, KPMG as the financial consultant, and Deloitte as the independent appraiser.

The investment opportunity was heavily promoted across international markets. Consultants utilized their global networks to initiate direct discussions with more than 100 strategic and financial investors. Details of the transaction were also featured in prominent international media outlets, including Bloomberg and the Financial Times, and presented to prospective buyers during dedicated global roadshows.

The promotional campaign generated significant interest, drawing participation from over 15 predominantly foreign investors representing the United States, Japan, the Gulf region, Europe, and the South Caucasus. Following initial reviews, ten participants submitted preliminary non-binding offers.

Shortlisted bidders were granted access to comprehensive financial and legal due diligence reports prepared to international standards. Subsequently, six participants advanced to the final stage, submitting binding offers to purchase the company.

A consortium comprising US financial investors led by McKim and Company, alongside the sector-specific technological partner JVR Enterprises LLC (operating as JVR Capital Group), emerged as the winner of the tender.

Under the winning proposal, MobiUz is valued at $351 million. Furthermore, the newly selected owners intend to invest up to $500 million into developing the company's telecommunications infrastructure.

The financial metrics of the winning bid reflect a highly efficient transaction for the state. The enterprise value to EBITDA multiple (EV/EBITDA) reached 7.4x, indicating a competitive business valuation that aligns well with comparable industry transactions and significantly exceeds the valuation initially established by the independent appraiser.

Finalizing the acquisition is subject to securing necessary approvals from relevant regulatory bodies, as well as completing standard corporate and legal procedures.