As previously reported, in accordance with the approved privatization programs, an international open bidding process for the sale of 100% state share in the authorized capital of “Universal Mobile Systems” LLC (MobiUz) was conducted.

As part of this process, the international investment bank Rothschild & Co acted as strategic adviser, KPMG, a member of the “Big Four,” acted as financial adviser, and Deloitte acted as independent appraiser.

The sale process was widely promoted in international markets through the global network of the advisers, as well as through direct meetings with more than 100 strategic and financial investors. In addition, information regarding the transaction was disseminated via Bloomberg and Financial Times and presented during international Roadshow events.

As a result, more than 15 investors from the United States, Japan, the Gulf countries, Europe, and the South Caucasus participated in the process, the majority of whom were international investors. 10 participants submitted non-binding offers (NBOs).

Prospective investors were provided with comprehensive financial and legal due diligence materials prepared by the advisers in accordance with international standards. Following the due diligence phase, 6 binding offers (BOs) for the acquisition of MobiUz were received.

With the objective of maximizing transaction value for the State, the sale process was carefully structured to encourage robust competition and elicit the most competitive offers from a diverse group of investors. Participants were given the opportunity to improve their binding offers during the final stage of the process.

Following the completion of the privatization process, the State Assets Management Agency, has decided to select the offer submitted by a consortium of financial investors led by McKim and Company, with the participation of the sector-focused technology partner JVR Enterprises LLC (DBA “JVR Capital Group”) (USA). The selected offer values the MobiUz Company at USD 351 million and includes an intention to invest up to USD 500 million in the development of telecommunications infrastructure.

It should be noted that the proposed price corresponds to an EV/EBITDA multiple of 7.4x, reflecting the strong efficiency of the transaction. This metric indicates a competitive valuation of the business compared to comparable transactions and is significantly higher than the valuation determined by the independent appraiser.

The final completion of the transaction remains subject to obtaining the required regulatory approvals, as well as the fulfilment of applicable corporate and legal procedures.

The State Assets Management Agency expresses its appreciation to all investors who showed interest in the process and submitted their proposals. The Agency also extends its special gratitude to KPMG, Rothschild & Co, and Deloitte for their significant contributions to organizing the process in line with high international standards.

The Agency looks forward to the continued development of cooperation with international investors and advisers.