Uzbekistan begins privatisation process for Mobiuz

Details: Vaughan O'Grady; Category: Investment; 10 June 2025; 16953 views

The State Assets Management Agency of Uzbekistan has officially launched the privatisation process of operator Universal Mobile Systems (UMS), better known under its brand name Mobiuz.

The government says it intends to fully divest its ownership by selling 100% of the company’s equity. Investment bank Rothschild & Co has been appointed as the lead strategic and financial advisor for the transaction, while KPMG will serve as an additional financial consultant.

The privatisation will proceed in three stages: expressions of interest, non-binding offers and binding offers. Both domestic and international investors are eligible to participate.

To take part in the first stage, applicants must submit a written expression of interest in Russian, Uzbek or English, along with company details, shareholder and beneficiary information, and audited financial statements for the past three years. The deadline for submissions is 6pm Tashkent time on 1 August 2025.

During the final stage, candidates will be granted access to KPMG’s comprehensive financial, tax, and legal due diligence reports on Mobiuz. They will also be able to visit its operational facilities. A bid bond equal to at least 1% of the offered price must accompany the final binding offer.

Universal Mobile Systems provides GSM, UMTS, and 4G LTE mobile and internet services. In 2024, the company reported net revenue of UZS2.086 trillion (about US$163.7 million), with a subscriber base of 7.8 million users.

UMS was originally established as a joint venture between Uzbekistan and Russian telecom operator MTS. MTS exited the venture in 2016, selling its stake to the Uzbek government.

Reuters reported at the time that MTS was also facing allegations of paying bribes to secure operating licenses in Uzbekistan, which may have influenced their decision to leave.

Reliable recent figures are not easy to find but, according to news resource UZDaily, it seems the main mobile network operators in Uzbekistan are Beeline (with 8.2 million subscribers according to some estimates), Ucell (9.5 million), UMS/Mobiuz, and UzMobile (8-12 million, depending on your source). Smaller operators Perfectum and Humans also serve this market.

As of 1 October 2024, the number of mobile subscribers in Uzbekistan reached 35.5 million people, according to the country’s Statistics Agency. Uzbekistan has a population of roughly 37 million.

In April of this year, the country’s president signed a new decree authorising the privatisation of several state-owned assets, including UMS. A large-scale privatisation programme is apparently under way, aimed at liberalising the economy, improving the investment climate, and developing the private sector.