Uztemiryolcontainer’s 35% stake sold for 200 billion UZS to Cotton Logistics

The State Assets Management Agency has announced the privatization of a 35% stake in Uztemiryolcontainer JSC, acquired for 200 billion UZS by Cotton Logistics, one of Uzbekistan’s leading transport and logistics companies. Cotton Logistics, which operates a fleet of 480 private railcars and manages over 1,000 additional rail assets, emerged as the highest bidder in a competitive selection process.

In the initial stages of the sale, six international and local investors from the CIS, Arab countries, Southeast Asia, and Europe expressed interest, submitting applications via Alkes Research, the consulting firm appointed to manage the privatization process. Of these, five qualified candidates were invited to advance to the next stage, which involved submitting binding offers. During this phase, bidders gained access to a virtual data room containing comprehensive financial, tax, legal, and environmental analysis of the company, along with opportunities to meet Uztemiryolcontainer's management.

Ultimately, Cotton Logistics offered the highest bid, meeting the conditions of the 200 billion UZS payment. As the new stakeholder, Cotton Logistics has committed to modernizing Uztemiryolcontainer’s business operations, including digitization and improved efficiency in transit capabilities, which will reduce transportation costs. The company also plans to implement modern corporate governance systems to foster sustainable development and enhance operational standards. The bid offered by Cotton Logistics was within the upper range of Uztemiryolcontainer’s appraised valuation, according to the consultant’s analysis.

This transaction was approved by the State Commission for the Privatization and Coordination of State Asset Privatization Processes. As part of Uzbekistan’s ongoing privatization efforts, a further 4% of Uztemiryolcontainer’s shares will be publicly offered on the local stock market through the "People’s IPO" program.

Cotton Logistics, with an annual freight turnover of one million tons, is recognized as one of Uzbekistan's largest transport logistics firms, underscoring the strategic significance of its acquisition of Uztemiryolcontainer.