Astana, Kazakhstan, April 14
By Daniyar Mukhtarov - Trend:
Kazakh National Welfare Fund, Samruk-Kazyna will put up over 200 companies for sale within the framework of privatization program, the Chairman of the Board of Samruk Kazyna, Umirzak Shukeev said.
In particular, the companies which are engaged in non-core business will be privatized, for example, those companies which produce solar panels in Kazatomprom.
Furthermore, the privatization will include those companies that compete in the market with private companies or do not have strategic importance, do not relate to matters of national security, and have no social significance.
"As a result we have now put up 209 out of our 599 companies for sale. Of those, 103 companies are for sale within the privatization program, 50 companies we've put up for sale together with second-tier banks, 54 companies are to be eliminated, and 20 more companies will be re-organized and handed over to state agencies," Shukeev said.
In turn, the Kazakh Minister of Economy and Budget Planning Erbolat Dossaev said that at the April meeting of the government, a list of quasi-public sector organizations awaiting privatization will be determined.
The list primarily includes 32 organizations of republican ownership, some 586 facilities of communal properties and 191 organizations belonging in the holdings structure, Dossaev said, adding that conceptual approaches to the definition of a common organizational-legal form for organizations that remain in the public ownership will be developed by the end of the first half of 2014.
It is planned to offer the market different packages of shares and ownership interests in 103 subsidiaries of the Samruk-Kazyna Group in 2014-2016. These companies are those which are the parts of Kazakhstan Temir Joly JSC NC, KazMunaiGas JSC, Kazatomprom JSC, Samruk-Energo JSC, KEGOC JSC, Kazakhstan Engineering JSC, Maikainzoloto JSC, etc .
Herewith, ownership interests in 93 companies are offered to be sold through auction, with possible involvement of strategic investors, 10 companies will be put on the stock market, including in the framework of the People's IPO program.
Thus, it is planned to sell some 10 percent of shares in KEGOC JSC and about 75 percent of the shares within the SPO JSC MEDNC within the IPO in 2014.
Also, in 2015 it is planned to offer the stock market up to 10 percent of shares in Samruk-Energo JSC and Kaztemirtrans JSC, 49 percent of the shares in KazTransGas Aimak corporatization., KazTransGas -Almaty JSC and Transtelekom JSC."
In 2016, the sale of 10 percent minus one share of Kazatomprom JSC and Kazakhstan Temir Joly JSC NC as well as 49 percent in JV Kazatomprom Sulphuric Acid Plant after its corporatization is expected.
"We will make every effort to implement the program in time. However, delays are possible due to a number of factors: for example, inclusion of companies on the IPO will depend on market conditions and the realization of assets - the willingness of the private sector to purchase offered assets. Moreover the dates and methods of privatization can be adjusted in the future," Shukeev said.
He also assured that the fund intends to work on the privatization of its assets as transparently as possible and on a regular basis publish data on the implementation of the program.
Translated by S.I.
Edited by S.I.