Uzbekistan initiates privatization of state shares in key enterprises

Silk Avia airline and the Humo payment system, both wholly state-owned, will be put up for public sale. Additionally, shares of state holdings in four organizations under "Uzbekneftegaz" JSC, forty-two under "Uzavtosanoat" JSC, and nine under "Uzbekistan Railways" JSC will be privatized, Azernews reports, citing Kun.uz news agency.

The presidential decree "On additional measures to reduce the state's participation in the economy" has been adopted.

The decree confirms the following:

- A list of share packages (shares) to be offered in public trading;
- A list of real estate objects of state and state-participated enterprises to be offered in public trading;
- A list of enterprises whose shares will undergo an initial (IPO) or secondary (SPO) public offering on the local stock market.

If state assets remain unsold for three months (with the exception of Tashkent city and regional centers), their value can be gradually reduced by up to 10 percent.

Entrepreneurs who have rented state property for at least five years and fulfilled their obligations under lease agreements until the current year will have the right to purchase the object directly at the assessed value included in privatization programs.

From July 1, 2024, in large state-participated enterprises:

- A corporate secretariat accountable to the supervisory board will be established to improve the corporate governance system, including increasing the efficiency of its bodies;
- Updated corporate governance rules and ethics code will be implemented;
- The possibility to formalize the supervisory board's protocols through electronic voting using remote information and communication technologies will be created.

Privatization of state shares in four organizations within "Uzbekneftegaz" JSC, forty-two within "Uzavtosanoat" JSC, and nine within "Uzbekistan Railways" JSC will take place.

Furthermore, 100 percent of state shares in Silk Avia airline, “National Interbank Processing Center” (Humo payment system), and Khumson sanatorium will also be put up for public sale.

In addition, an initial (IPO) and secondary (SPO) public offering of state shares in twelve large enterprises will be conducted on the local stock market.