Kazakhstan found an advisor on sale of 30% in Mangistaumunaigas

/IRBIS, Feb.1, 00/ - REUTERS informs the Ministry of finance of Kazakhstan has designated consortium of companies IDEY Limited as an advisor on sale of 30% shares of Mangistaumunaigas - one of the "blue chips" to be sold to portfolio or strategic investors. "Kazakhstan signed an agreement to offer a complex of services on sale of 30 percent of Mangistaumunaigas amounting to 3,268,381 shares with IDEY Limited", she said. The consortium includes Ernst and Young Kazakhstan, Petroconsulting-Mai Limited (trade name IHS Energy Group) and Denton Hall Valdez Crug Company Limited. There is no information on whether an advisor was found for remaining three companies: Kazzinc, Ust-Kamenogorsk titanium-manganese combine and Aktobemunaigas. She says the most important criteria were the experience in privatization sector of CIS countries or Kazakhstan, privatization terms and strategies, commission and overhead expenses. It took more than a year for the government to find a financial advisor for its elite enterprises to sell their state owned block of shares. The advisor will make a presales preparations within 27 weeks from the date the agreement was signed. None of the expenses will be paid out of the budget, informs the Ministry of finance. It is the seller who is going to pay to the government for the state owned block of OJSC Mangistaumunaigas shares and to the advisor its "success" fee. Annual production of Mangistaumunaigas is about 4 mln tons of oil. 60% of the company shares belong to Indonesian Central Asia Petroleum, and 30% is under the state control. The company workers own remaining 10% of preferred shares.