Top management of “Samruk-Kazyna” JSC met with diplomats, foreign businessmen, investors and bankers.The Fund’s representatives told about a new strategy of switching from the role of asset manager to an active investor, interim results of the transformation program and privatization program. «Samruk-Kazyna» JSC has invited investors to cooperate in the framework of new industries projects.



“We made our changes not for a trend but to open new business opportunities to all our portfolio companies. Why we believe in success? We have clear vision. This vision is shared by the leadership of the country, management of the companies and public. We attract top talent with international experience to run this process. We have reliable partners with strong reputation to advice us. We took every advice and learn lessons of other privatization globally. We are introducing international best practices, principles of corporate governance, sustainability, transparency and efficiency. We recognize our potential and capabilities to drive growth,” CEO of “Samruk-Kazyna” JSC Umirzak Shukeyev told at the meeting with diplomats, foreign businessmen, investors and bankers in Astana.

Our strategy and approach to portfolio management is to change Samruk-Kazyna from asset administrator to an active portfolio investor. Our transformation agenda is to change from post soviet monopolies to competitive, efficient and profitable business. Our privatization program is opening doors for investors. Our new investments - new industries and future projects. We invite you for cooperation,” he added.



“How do we execute transformation? We defined for ourselves structured tangible goals. We have three main blocks of what we do in transformation. First one is increase performance of our assets. We try to make them attractive not only for investors, but shareholders too. We started from reviewing strategies of the Fund itself and each and every national company. We defined new structures of KPI to drive performance downwards to operational levels. We embarked on major business reengineering exercises which includes reviewing business processes, organizational structures, information technology, etc. Second major block is reviewing and optimizing our portfolio. We look at simplifying the ownership and legal structures of our assets. Third block is corporate governance. We strive to improve it and redefine interaction with government and other state institutions. We refine efficiencies and mandate of our Board of Directors because these are the bodies who have to drive and take more responsibility of the faith of our companies,” Adamas Ilkevicius, Managing Director for Transformation and Special Projects, told.



“Samruk-Kazyna” is driven by three main objectives: modernization of the national economy, increasing long-term value of our portfolio companies and sustainable development. All the process and functions in the Fund are geared around this strategic mission. The business reengineering at the Fund has already started to give results in terms of our performance. We closely align our peer benchmarkings to Malaysian SWF Khazanah, SWF of Singapore Temasek and UAE’s SWF Mubadala. These funds very closely manage national assets and national holding companies. Our philosophy is closely aligned to our peers. On a yearly basis sovereign wealth funds representatives meet at different locations to discuss investment cooperation. This year “Samruk-Kazyna” has been honored to host the International forum of sovereign wealth funds in Astana. It is a testimony to the development of Kazakhstan as pivotal economy in Central Asia,” Managing Director for Strategy and Portfolio Investment Baljeet Kaur Grewal said at the meeting. 

“Samruk-Kazyna develops new industries. We are open to cooperation with investors in this direction. There are growing companies in the Fund’s portfolio. For example, United Chemical Company. The company’s mission is to leverage off Kazakhstan’s oil&gas resources by using it for petrochemical production purposes. Backed by the Government support, United Chemical Company develops petrochemical cluster in Atyrau. This year the company will put into operations another free economic zone in Zhambyl region, which also provides plug and play infrastructure for basic and specialty chemicals production. United Chemical Company is in advanced stage with projects for production of polypropylene, caustic soda and tri-chloride phosphorus and glyphosate. Within next few years, it will emerge as one of the largest players on chemicals market in the region.

The next one is a mining company Tau-Ken Samruk. It holds a diversified portfolio of deposits in Kazakhstan in zinc, lead, gold, iron ore and tungsten. It is one of the key sources for growth in our portfolio. Tau-Ken Samruk is one of the companies offered for privatization. We are looking for strategic partners who would add their expertise to our team, but will get substantial return on their investments within next five years. Real Estate Fund is one of the leading players on residential market in Kazakhstan. By executing several State programs for residential market development, the company got strong expertise, which will be useful for international investors willing to enter Kazakhstan real estate market.

Qazaq Air is a newly established regional air carrier. From day one its sole mission was to provide high standards of safety and services provided on regional market,” explained Со-Managing Director for New Industries Development of “Samruk-Kazyna” JSC Yerzhan Tutkushev.



“The assets for privatization belong to a variety of industries and subsectors. For example, “Euro-Asia Air” is the largest helicopter operation company. Aktau commercial sea port is the only sea port of Kazakhstan. Kazmortranflot-national marine commercial fleet operator transporting dry cargo and oil products internationally. We have also three international airports in Atyrau, Aktobe and Pavlodar. In energy and power generation sector we have very interesting project called KazPv which consist of three companies such as Astana Solar, MK KazSilicon and Kazakhstan Solar Silicon. These are vertically -integrated manufacturers of photovoltaic solar panels. In implementing its’ privatization program, Samruk-Kazyna is committed to an ideology that provides investors with equal rights and transparency. At the same time, for each of the Asset lists specific sale method is chosen to ensure efficiency, effectiveness, and mutual benefit of all stakeholders. For example, IPO is considered a preferred method of privatization for largest companies. The first companies-candidates for IPO - «Air Astana» and «Kazatomprom». Currently, we are selecting investment banks. After studying the companies and conducting due diligence, we will define the exact terms of the IPO. But this will not happen until 2018,» Director of Assets Privatization and Restructuring Department of “Samruk-Kazyna” JSC Dauren Tasmagambetov reported. 

“Kazatomprom” is a vertically integrated company. We became one of the main uranium suppliers to the USA and France. We have diversified the market presence and have had significant exposure to highly growing Asian markets. We cooperate with all major international companies on exploration and production issues. In terms of enrichment services we work with Russian company Rosatom. We started very ambitious project last year with our Chinese partners to establish in Kazakhstan fuel assembly plant,” CEO of “Kazatomprom” JSC Askar Zhumagaliyev noted.