Kazakh Halyk Bank buys-back its preferred shares from Samruk-Kazyna

Business Materials 5 July 2012 17:45 (UTC +04:00)

Azerbaijan, Baku, July 5 / Trend E. Kosolapova/

Kazakh Halyk Bank early bought-back its 40,000,000 preferred shares from Kazakh Sovereign Wealth Fund Samruk-Kazyna, the bank reported on Thursday.

The preferred shares were bought at 180.21 tenge (149.53 tenge = $1) per share for the total amount of 7.2 billion tenge.

On 29 June 2012, Halyk Bank has already bought back its 150,000,000 preferred shares from Samruk-Kazyna for the total amount of 27 billion tenge.

The buy-back was executed in accordance with the terms and conditions of the option agreement in relation to preferred shares of Halyk Bank signed on 22 April 2009 between Samruk-Kazyna and Holding Group Almex, the major shareholder of Halyk Bank. Earlier Halyk Bank purchased the Option from Almex.

As a result of buy-back of preferred shares, Holding Group Almex has 59.8 percent, Accumulated Pension Fund of Halyk Bank has 12.9 percent and GDR holders have 19.7 percent of total shares as of 5 July 2012.

Buy-back price for preferred shares from Samruk-Kazyna was determined in accordance with the terms and conditions of the Option, which contemplates a holding period return of 9.5 percent per year to Samruk-Kazyna, including dividends paid.

Should Halyk Bank decide to reissue treasury shares it would follow standard issue procedures in accordance with the law of the Republic of Kazakhstan, including the offering of shares to existing shareholders on preemptive basis.