Astana-finance OJSC (Kazakhstan): Comments of KASE Listing commission

/IRBIS, May 29, 05/ - Following are comments of the Listing commission of the Kazakhstan Stock Exchange (KASE), which is made due to the transfer of the company's common shares (KZ1C37671418, trade code - ASFI) from official list of the KASE securities under category "B" into category "A". The goal of the comments is to draw an attention of the Exchange council of KASE, which is to make a decision on transferring the shares of Astana- finance OJSC into more higher category of the securities lists, to certain aspects of the issuer's activities, which are of great importance in the opinion of the Listing commission. They also deserve the attentions of potential investors. All figures are given in KZT, unless otherwise indicated. LIQUIDATION OF ADMINISTRATIVE COUNCIL OF SEZ OF ASTANA From January 1, 2001 the Special Economic Zone (SEZ) of Astana was abolished ahead of time. The biggest stake in Astana-finance, 41.4%, is owned by the successor of Administrative council of SEZ, the Municipal Property Fund of Astana GKP. By the data of Astana-finance OJSC, the deadline for the liabilities of the company to Administrative council of Astana SEZ remained unchanged on a long-term base. Other changes, such as cancellation of favorable taxation, will surely have impact on the activities of Astana-finance OJSC, but, as the management believes, they will not be significant. INVESTMENT ACTIVITIES In late 2000 Astana-finance OJSC had 5% or more in authorized capitals of 16 legal entities. Of this number of companies, 13 were incurring losses during the last two years (in 1999 total loss equaled 888 mln, in 2000 - 56 mln). The loss of subsidiaries noticeably decreases consolidated income of Astana-finance OJSC, which equaled 129 mln in 2000, whereas it was at 185 mln on a non-consolidated basis. Based on the decision of the Board of directors of Astana-finance OJSC, in 2001 the company plans to give its subsidiaries, whose activities are based on offering services to the city, to Fond kommunalnoi sobstvennosti goroda Astana GKP (Municipal Property Fund of Astana) on account of the repayment of its 6,447 mln debt to the city. In 2001 Astana-finance OJSC starts new investment projects: Astana Gas Service and Akmolinskaya raspredelitelnaya elektrosetevaya kompanya CJSC (Akmola power distribution company). The company plans to invest $70 th into authorized capital of Astana Gas Service OJSC, resulting in 70% stake in the company. Also, the company plans to reconstruct and repair power lines of APDC OJSC, purchase fuel, lubricants and other inventory for 231 mln by using the funds of the company's founders, where the company has 33% stake. ACCOUNTS RECEIVABLE OF SUBSIDIARIES Accounts receivable of the subsidiaries amounted to 51% of all Astana- finance OJSC assets as of Jan 1, 01, or 6.48 bln. As a result of the works done in first quarter of 2001 to improve the accounts receivable, its proportion fell to 29% as of Apr 1, 01 (3.72 bln), but it is still significant. Such a drastic decrease in accounts receivable is due to the fact that based on the decision of the Administrative council of Astana SEZ of December 12, 2000, in the first quarter of 2001Astana-fiannce OJSC purchased 3,779.09 mln worth of Astanaenergoservis OJSC shares on account of the repayment of its accounts receivable.