The investment company UzAssets announced that it had reached a deal on privatization of ElektrQishloqqQrilish in Uzbekistan. The state-owned stake in 58.41% in the company is being sold to the Ural Energy Construction Company (UECC) from Russia. The buyer offered 93.2 billion soums for the asset ($8.14 million at the exchange rate of the Central Bank on March 15).
The state’s stake in ElektrQishloqqQrilish was put up for sale in November 2021. The international company Grant Thornton was involved as a consultant on the transaction, and Dentons provided legal support.
In total, 7 bids were received from investors for the facility. They were studied for the absence of litigation, as well as sanctions from the European Union, the United States and international financial institutions.
UECC's proposal was called "the best", as the price parameters are within the indicative range of costs calculated by the consultant and exceeded the results of an independent assessment. UzAssets expects that in the future the Russian company will be able to maintain the sustainable development of ElektrQishloqqQrilish and become one of the largest industrial enterprises in the construction of power grid facilities with various voltages.
ElektrQishloqqQrilish was established in 1936 as a specialized company for electrification of agriculture. In 1998 it became a joint stock company.
Now the company takes the place of the main contractor for the construction of power grid facilities with voltage from 0.4 kV to 500 kV inclusive in Central Asia. It performed electrical work for Lukoil, Hyundai Engineering, Hengyuan Group and others.
The business structure of the company includes the Namangan Steel Structure Plant, the Kuvasay Concrete Products Plant, the Production and Technological Equipment Department in Tashkent, the production of linear-coupling fittings and hardware, and six mechanized columns.