This week, key topics were discussed in the areas of privatization, economy, and the automotive industry. In this weekly roundup, Spot has gathered the most important articles and news that you might have missed.
Privatization
On January 13, AUGA agreed to sell 100% of the shares of the National Interbank Processing Center, which manages the Humo payment service.
The privatization of the company began in mid-July with the involvement of consultants from Deloitte. Of the 6 candidates allowed to submit binding commercial proposals, 3 companies submitted their applications within the established timeframe.
The best proposal was recognized to be from Paynet, which valued the asset at $65 million. This amount falls within the indicative price range according to Deloitte and exceeds KPMG's valuation, noted AUGA. Previously, experts surveyed by Spot estimated the minimum value of Humo to be between $60−80 million.
The buyer committed to taking measures to ensure the stable and uninterrupted operation of Humo, as well as to protect the confidential information of users.
On Monday, Paynet reaffirmed its commitment to "the principles of fair competition, the unification of efforts to develop national payment systems, and the implementation of advanced financial and digital technologies to accelerate the introduction of new forms and methods of payments to stimulate the development of the digital economy and entrepreneurship."
The CEO of the company, Anvar Isamukhamedov, stated that as a result of improving business processes, expanding the range of products and services, and implementing new technologies, Paynet and Humo will be able to provide "higher quality, accessible, and innovative solutions" for the population and businesses in Uzbekistan.
The deal with Paynet for the privatization of Humo was concluded on December 25, 2024, but AUGA officially announced it nearly three weeks later on January 13, according to the Unified Portal of Corporate Information.
On November 1, 2024, at an extraordinary shareholders' meeting, Paynet unanimously decided to purchase 100% of the state share in the NMP Center. The executive body also approved the signing of a sales contract for Humo with a maximum value of $65 million at the Central Bank's exchange rate on the payment day. The deadline for submitting a binding offer was set for November 15.
Shareholders instructed the executive body to make a deposit of 15 billion soums, submit a proposal to AUGA for acquiring the state share in the NMP Center for $65 million, sign the sales contract, and transfer funds "in the manner and timeframe established by the contract." However, the payment terms and scheme have not been specified by either party.
The transaction value amounted to 840.3 billion soums ($65 million), which is more than three times the size of Paynet's net assets (261 billion soums).
Economy
Companies from Uzbekistan and the UAE have signed a number of new agreements. In particular, an additional 15 agreements and contracts were signed with companies such as AMEA Power, Masdar, Solar Power Shine, M42, Burjeel Holdings, IFFCO, TWS, Alserkal Group, Metito, AD Ports, Jetex, Emirates Group, and others.
The documents cover the energy and agricultural sectors, water supply, infrastructure projects, and the transport and logistics industry. For example, the agreement with Jetex pertains to the development of the "Tashkent-East" airport and the provision of services in the business aviation sector.
Several agreements were made in the fields of medicine and pharmaceuticals.
For instance, the investment company Ittihad International Investment signed an agreement for the implementation of a large public-private partnership project, estimated at $70 million.
Another agreement with Burjeel Medical City involves building a rehabilitation complex on the territory of the Republican Scientific Center for Emergency Medical Care. Up to $30 million will be invested in the project.
Uzbekistan and the UAE have agreed to expand cooperation in the development of generative AI, including the application of large language models in the energy sector and the establishment of a large data processing center in Tashkent.
Additionally, there was discussion about enhancing exchanges with the Muhammad bin Zayed University of Artificial Intelligence. The President proposed launching a student training program and adopting a roadmap for preparing highly qualified specialists in the field of AI.
Companies from the UAE will be involved in creating new power plants in Uzbekistan, mining rare earth metals, developing railroads, and "dry" ports. The UAE plans to increase investments in Uzbekistan to $50 billion. The governments of the two countries have signed an agreement on mutual encouragement and protection of investments.
Furthermore, without a customs declaration, it will be impossible to register a phone in the UzIMEI system. In the fall of 2024, the Customs Committee and UzIMEI completed the integration to identify undeclared mobile devices.
Binance has reached an agreement with NAPP to operate in Uzbekistan. The cryptocurrency exchange will serve local clients and process payments through the Coinpay platform. The new system will start operating after the integration of modules between platforms, including the connection of payment systems Humo and Uzcard.
Automotive Industry
The Center for Scientific Testing and Quality Control (UzTest) will revise the technical inspection process for imported vehicles. To address the issue of queue violations, a new procedure is being implemented, whereby only one slot in the electronic queue will be linked to each PINFL.
A new application can only be submitted after the previous slot has been used. Unused applications will be automatically deleted from the system, stated UzTest.
Moreover, by hiring additional staff, it is planned to accelerate the testing time from the current 20 minutes to 15 minutes. This will allow for the testing of 96 vehicles per day instead of 72.
UzAuto Motors has decided to pay shareholders 975 soums in dividends per share for three quarters of 2024. The state-owned company retains 8.5 trillion soums or 97% of its undistributed profits.
By the end of 2024, over 400,000 new cars were sold in Uzbekistan. UzAuto Motors accounted for nearly 88% of all sales. Last year, over 17,100 BYD electric vehicles were sold.
UzAuto Motors has placed repeat orders for 40,000 Cobalt vehicles. Almost all cars from the Midnight version ordered on January 7 have been re-contracted.
In the Surkhandarya region, driving schools have opened following the intervention of the Senate. In January, 14 driving schools of the "Vatanparvar" organization submitted a request to the Ministry of Internal Affairs, some of which have already been issued licenses.
Articles of the Week
In an interview with Spot, the author of the Troll.uz project, Umid Gafurov, shared the story behind the blog's creation, issues with government structures, and the challenges of living by principles. The discussion included the advertising agency Tanish Bilish, the author support platform Tirikchilik, and the namesake offline store in Tashkent.
The marketing director of the "Korzinка" supermarket chain, Malik Karimov, shared with Spot books that teach effective management and communication, achieving high results, and proper time management.
Tanish Bilish, Eight Media Maker, and We Digital shared with Spot the trends in native advertising through Telegram, new formats, and changes in integration costs. The agencies also provided rankings of the most expensive Telegram channels in the Uzbek and Russian-speaking segments.