One of the largest privatization processes in Uzbekistan’s telecommunications market has reached its conclusion. A foreign consortium has been declared the winner in the bidding process to acquire a 100% state-owned stake in the charter capital of “Universal Mobile Systems” LLC (operating under the Mobiuz brand).
The privatization of the mobile operator Mobiuz had been reported previously. Specifically, in the summer of last year, Bloomberg reported, citing its sources, that the government of Uzbekistan was planning to sell the company for approximately $300 million. At that time, it was noted that potential investors from Qatar, Saudiya Arabia, Azerbaijan, and Europe had expressed preliminary interest in the privatization process.
Initiated in accordance with the relevant decrees of President Shavkat Mirziyoyev, the State Asset Management Agency organized international open biddings, appointing “Rothschild & Co” as the lead consultant and “KPMG” as an additional financial consultant.
Details of the current agreement
According to the final bidding results, the recorded value came out even higher than anticipated, with Mobiuz being valued at $351 million USD.
The consortium led by the US-based company “McKim and Company”, which includes financial investors and the sector-specific technological partner “JVR Enterprises LLC” (DBA – “JVR Capital Group”), was declared the winner of the selection process.
This massive agreement is significant not only for its acquisition value but also for the scale of future investments. The new investors plan to inject up to $500 million USD in additional investments into the company.
The transition of Mobiuz—which holds a 20.9% market share and serves over 7.8 million subscribers—into the hands of Western capital marks the beginning of a new era in the country’s digital ecosystem. The planned half-billion-dollar investment inflow is expected to provide a powerful new impetus to upgrading the country’s digital infrastructure, radically improving internet quality, and rapidly expanding modern 5G technology coverage.
