Gov’t plans to sell shares in 7 state-owned companies on international market

By a resolution dated April 19, President of Uzbekistan Shavkat Mirziyoyev approved a list of state-owned blocks of shares that will be put up for auction on the international market with the involvement of professional consultants.

There are seven companies with state participation:

•  Dekhkanabad Potash Plant (100%) – in the fourth quarter of 2024;
•  Samarkand Automobile Plant (SamAuto) 75.2% – in the fourth quarter of 2024;
•  insurance company Uzbekinvest (79.4%) – in the first quarter of 2025;
•  Uzagrosugurta (94.5%) – in the first quarter of 2025;
•  Inter Hotel (100%) – in the first quarter of 2025;
•  JSC Thermal Power Plants (51%) – in the second quarter of 2025;
•  Tashkent Metallurgical Plant (49.9%) – in the second quarter of 2025.

The President ordered, before July 1, 2024, on the basis of a proposal from an engaged consultant, to begin the privatization of the state share of 51% or more in the authorized capital of Thermal Power Plants or individual thermal power plants within the JSC.

The enterprise includes 4 thermal power plants (Syrdarya, Talimarjan, Turakurgan and Angren), 3 thermal power plants (Fergana, Mubarek and Tashkent), 3 service enterprises (Uzenergotaminlash, Uzenergotamir, Uzenergosozlash) and Tashkent Heat Central LLC.

Based on the program of privatization and reform of chemical industry enterprises, the Agency of State Assets has been instructed to complete the process of privatization of the state stake in the Dekhkanabad Potash Plant (100%) by the end of 2024.

The plant was planned to be privatized before October 1, 2023, but was postponed in order to assess the mineral base.

Later it became known that the Fund for Reconstruction and Development (FRDU, the country’s sovereign fund) allocated 1.9 trillion soums to repay the plant’s problem debt and interest on them in the amount of $165.1 million (FRDU loans for 102.16 million and 61.99 million dollars and interest). That is, the fund purchased shares of the plant in order to repay its own loan.

The construction of the plant itself cost $123.67 million, the nominal authorized capital is 2.66 trillion soums.

Before July 1, it is also planned to begin work on putting up for auction a 75.2% share of Uzavtosanoat JSC in the authorized capital of the Samarkand Automobile Plant (SamAuto) with the involvement of professional consultants.

In addition, in 2025 it is planned to sell up to 5% of the shares of four large state-owned companies on the international stock market. The secondary offer (SPO) of Uzbekhydroenergo is scheduled for the second quarter, the primary offer (IPO) of the Navoi Mining and Metallurgical Combine is scheduled for the third quarter, the IPO of Uzbektelecom and the Almalyk Mining and Metallurgical Combine is scheduled for the fourth quarter.

Working groups will be responsible for preparing for privatization. Among their main tasks is the preparation of financial statements of companies according to international standards, as well as coordination of work on attracting consultants, obtaining international ratings, coordinating the activities of underwriters and organizing the preparation of marketing materials.

The President also previously signed a decree on accelerating the privatization of state-owned facilities in Uzbekistan. It is planned to sell state shares in 247 companies, including the Humo payment system. over 1,000 real estate properties and public offering of shares of 12 large enterprises. The cost of unsold land plots will gradually decrease.

This year, revenues of 20 trillion soums are expected during the privatization processes through the sale of stakes in 400 enterprises, real estate in 800 enterprises and 2,000 hectares of land.

Earlier it became known about the privatization of the gas station network of the Uzbekneftegaz company, the Chinaz oil refinery, the mobile operator Perfectum and the payment service Uzpaynet. The transactions were not officially announced.