Halyk bank to sell over 25% of new shares to a foreign investor in the 2nd half-year - updated version

/Interfax-Kazakhstan, Almaty, January 12, 05/ - Kazakhstan commercial Halyk bank (HB) plans to attract a strategic foreign investor in the second half of this year having sold him over 25% of shares. "We (HB - "IF-K") now continue to hold negotiations with three potential European investors, which began in December of last year. The matter concerns selling to them a big but not control packet of shares, that, of course, will occur due to increasing of shareholders equity", - said Grigory Marchenko, who was recently appointed for the post of the chairman of HB's board, on Wednesday in Almaty during the press-conference, answering the question of "Interfax-Kazakhstan". He has noted that bank's shareholders intend to sell to a new investor "25%+1 share, and may be even more". For this purpose bank intends to make an additional share issue, he said. Marchenko has said that negotiations with investors are held, first of all, about purchasing of bank's common shares by them, that, as he says, will let include a representative of new shareholder in the staff of bank's board of directors. At the same time, bank's control packet of shares, Marchenko notes, will remain in Kazakhstan shareholders' possession, that, according to his words, is "the major topic of negotiations held with new investors, which require a long time". At the same time HB's new head says "there would be much more persons willing to buy bank's control packet of shares, but we (bank's board - "IF-K") do not have such the authorities given by shareholders". At that, expressing his opinion about is, Marchenko has said that on this stage of HB's development he considers sale of HB's control packet of shares" as the absolutely incorrect thing". He says already "in the nearest month HB plans to solve this questions already, by May - finish all procedures on this deal, and in the second half of this year, in any case, bank will have to start working together with a new strategic investor". Marchenko considers it necessary to attract a new foreign investor not only for increasing of HB's capital, but, first of all, for fulfillment of tasks concerned with bank's switching to European accounting standards, and also for effective introduction of risk control systems and development of modern information technologies. Marchenko has noted that HB's further policy on foreign countries' markets, in particular, Russia's and Kirgizia's markets, will depend on choosing of a new investor. "Our strategy in neighboring countries will in great degree depend on who will become bank's strategic investor, because all three potential investors, who we hold negotiations with, for example Russia, are in different situations", - he explained. Marchenko says HB, besides Russia and Kirgizia, where it works through its subsidiary banks, intends to develop its business in China, Ukraine and Azerbaijan. He also says HB "must not exclude development of its business in Central Asia". "If certain economic systems are revealed in these countries, we can work on their markets as well", - he said. At the same time Marchenko has reminded that at present HB has representatives in London, Moscow and Peking. Before Marchenko said after a new investor comes and become the head of the bank, it's planned to borrow $50-100 m. As was informed, Marchenko filled the post of the chairman of HB's board on the past Monday. Since October of 1999 till January 6 of 2004 45-year old Marchenko headed the National Bank. After that he filled the post of the first vice-premier of the republic. However, soon, on account of disagreements with the government's policy on several questions of country's economic development, he sent his resignation and was appointed for the post of the country's resident assistant. In October of last year Marchenko said Nursultan Nazarbayev satisfied his wish to leave his post. Then he also said he intended to work in the private business. HB is one of three biggest Kazakhstan banks. At present major shareholders of HB are two Kazakhstan companies - Almex LLP and Visor, and also over 30 th. physical persons. [2005-01-12]