Speech by Head of «Samruk-Kazyna» JSC Umirzak Shukeyev on privatization at CCS media briefing
Into the structure of Fund enters 599 companies, both controlled, and joint and controlled. It should be noted that the Fund carries out permanent and system work on optimization of structure of the assets. So, within approved by Boards of directors and Programs implemented by the companies for restructuring of assets, for example,
- KazMunaiGas simplified management structure by its affiliated organizations: their heads at the same time are vice-chairmen of Board of KMG;
- in KTZh profile assets are structured again created companies «KTZh-freight Transportation», «KTZh-Passenger Traffic», «KTZh-Infrastrukture», and separate non-core assets (for example, «Zheldorremmash» and «Zheldorvo heating supply») are liquidated;
- in Samruk-Energy – are liquidated KMG-Energo, Kazkuat, the Ekibastuzsky Power center, and «Samruk-Energo Structure Service» is implemented as non-core;
- in KazAtomProm for the purpose of an exception of an excess managerial link and duplication «Mining company» is attached to the corporate center;
- in KEGOC the non-core service company is liquidated.
Taking into account the last orders of the country leaders the specified work on optimization and restructuring of assets received a new impulse. So, in pursuance of the order of the Head of state we prepare the Privatization program on which basic provisions I would like to report.
First of all, I will stop on results of work on restructuring of non-core assets and objects for 2013.
At the end of last year it was implemented in a competitive environment of 11 non-core assets and 394 objects. Among the implemented - the Meyrim medical center, hunting economy «Orman Bulak», the Gas worker hotel in Taraz, «Samruk-EnergoStructureService», recreation facility of «Sengirbay», 3 kindergartens in Alma-Ata, the entertaining center FLY in Shiyeli, 355 apartments, office rooms and garages, «Training center Semser» and etc.
In 2014-15 in a competitive environment will be implemented 16 more non-core assets and 19 objects with a total carrying amount of assets of 50,8 billion tenge. Among them - hotel complex Duman, sanatorium Saryagash, an improving complex Akbulak, the KTZh rehabilitation center, shares in Borjomi hotels of Likani (Georgia), Aysir tourism (Turkey), Altyn Tolkyn (Kyrgyzstan), Palace of culture in Ust Kamenogorsk and etc.
ABOUT Regulated Bank
Shares of BTA-bank, Temirbank and Alliance Bank are actually sold in a private sector.
About national IPO
It is known that within the National IPO program on the stock market the 10% share block of KazTransOil was successfully removed. Investment profitability in 2013 made more than 23%, weighted average price of shares in January-April of that year is 60% higher than the placement price.
We consider necessary to speed up work in this direction and to remove on national IPO KEGOC share blocks (in the current year) and Samruk-Energo (next year) what requires the timely solution of a number of problems at the level of the Government about what I will tell further.
About the list of the companies to privatization
The privatization program of JSC Samruk-Kazyna is developed taking into account world experience. It proceeds from the principles of Yellow Pages Rule.
Within execution of the order of the Head of state by group of Fundis prepared the list of privatized assets on the basis of the following criteria: the companies are completely removed from Fund structure in a private sector, if
∙ they are engaged in non-core productions (for example, production of solar batteries in KazAtomProm);
∙ in the market there are other private companies performing similar types of activity;
∙ they haven’t any of strategic importance and don't raise the questions of a homeland security, defense capability of the state and a law and order;
∙ they have no public importance in case of accomplishment by the state of functions on social support of the population.
In other cases (i.e. if in the market there are no such companies, or it has strategic importance and the social importance) the company can be privatized partially – or in the stock market, or through auction with possible involvement of the strategic investor. Thus the controlling stock remains in group of Fund, and its size is determined by degree of the strategic and social importance of the company.
The privatization based on such approaches, corresponds to Strategy of Fund and pursues the following aims:
- optimization of structure of assets of Fund;
- increase of level of corporate management and, respectively, transparency and overall performance of the companies;
- attraction of a transfer of technologies and the equity for development of the companies;
- stimulation of development of small and medium business;
- stimulation of development of the Kazakhstan stock market.