“Samruk-Kazyna” JSC plans to privatize 106 assets over 4-year period. 
In order to implement such task, by managing state assets and attracting strategic investors the holding opens the way for small and medium enterprise development. Mr. Nurlan Rakhmetov – Financial director of the Fund, stated that in the interview he gave to the BNews.kz reporter.

- Nurlan Kussainovich, what was the process of privatization last year, and what are the results? How many assets have been sold from the list of the assets put up for sale?
- We have put up 59 assets for sale in 2014. Including, 12 assets with the total price of 4,1 billion Tenge. While according to the preliminary appraisal the value of these assets was 2,5 billion Tenge, in course of sale this sum increased 1,6 times. This is an indicator of high interest to the assets of the fund. Furthermore, within the framework of «People’s ІРО» program implementation, shares of «KEGOC» JSC will be offered to the market. The Government considers prolongation of the period of sale for 5 assets. The assets were not sold at once. This is not surprising. The price if not cheap, and the decision on purchase cannot be made spontaneously. 

- How many assets are scheduled for sale in 2015?
- We plan to privatize 17 assets in 2015. This does not necessarily mean that the assets will be sold this year. I am saying that the assets are ready for sale. I would also like to mention that the assets, put up for sale, mostly represent large business. In such case, strategic investors and partners have an advantage. Moreover, we cannot sell the assets with unreasonable prices just for the sake of selling. Even if we do not sell the assets this year, we will do so next year. Furthermore, time is needed to think about the purchase, to weigh the risks and opportunities before making a decision.

- The Head of the State instructed to sell the assets in the most open manner. How is this instruction implemented now? 
- Yes, taking into account the instruction of the Head of the State, we are working in the direction of making privatization process open. In course of program implementation, work was conducted to raise awareness among the people, who demonstrated interest to some asset. This is work in progress. Furthermore, we have opened special communication centers for consults; we organize meetings with potential buyers, so that they could receive full information about assets. Currently, any citizen, using the internet can gain access to comprehensive data on the assets for sale. The sale of assets is mainly done through electronic trading platform of the Ministry of finance gosreestr.kz. Full information about the assets is published on the website www.privatization.sk.kz. Furthermore, the special commission, including independent experts ensures control. They monitor the compliance of the bidding with the law. Therefore, the new stage of privatization stands out compared to other ones because of its transparency.  

- Are any changes possible to the approved list of assets for privatization?
- Certainly, they are. We take this into account. The market environment is subject to change; therefore, the list of assets can also change. During functional analysis, which will be conducted for the purpose of optimizing the number and structure of the subsidiaries and lower-tier subsidiaries, some new candidates can appear among the investors. Some companies can be reorganized of dissolved. In terms of the list, approved by the Government, I can say that it was compiled on the basis of the proposals of the government bodies. Therefore, the list is also subject to amendments and changes.

- In which manner were the companies chosen for the list for privatization?
- The principles for selection are simple. The government has clearly established the companies of “Samruk-Kazyna” JSC, which will stay in its ownership. This includes, first, sectors of strategic importance, on which the development of the country depends. For instance, in some countries, like the USA or Germany, the railroad is controlled by the state. One should not forget about other items of special significance. These are pipelines, gas-lines, energy transportation network, so, these could be infrastructure companies. Second, one should remember that there are some sectors not particularly interesting for the investors. The state, although participating in development of such sectors, does not pose as a competition to the business. Currently, the spheres, which require participation of the state, have been clearly identified. Additionally, just as any other company, “Samruk-Kazyna” JSC has a development strategy. If some activities do not fall in line with our strategy and direction, we are trying to cut it down. The assets for sale are chosen using this principle.

- What will be the use of the funds from sale of the assets? 
- Any businessperson, who sells his assets, tries to use the funds for business purposes. This means investing them for the most profits. In other words, these are investment projects. We have a large portfolio of such projects in the Fund group. The profits from sale over the next 10 years will be fully invested in implementing potential investment projects. Currently the total portfolio of such projects is USD 150 billion. Therefore, we have targets for investment – these are perspective projects. 

- Thank you for the interview!

Source: Bnews.kz