NAC Kazatomprom refutes information about privatization of some of the company's assets
/KASE, May 23, 2022/ – NAC Kazatomprom JSC (Nur-Sultan), whose securities are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following press release dated May 23, 2022:
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JSC National Atomic Company "Kazatomprom" ("Kazatomprom", "KAP" or "the Company") is providing the following response to a draft resolution from the Government of the Republic of Kazakhstan ("RK") posted for public discussion on the e-government portal (eGov), as well as several recent media reports regarding meetings between Kazakh and Russian officials.
On 20 May 2022, a draft of an updated list of companies to be privatized under the government Privatization Plan was released, which now includes Kazatomprom's drilling subsidiary Volkovgeologiya JSC, the Company's provider of security services Qorgan Security LLP, and KAP's uranium mining asset, JV Budenovskoye LLP ("JV Budenovskoye"). The information is incorrect and not aligned with the Company's established disclosure protocols and governance process. The Company's management team and Board of
Directors have initiated discussions with the appropriate state authorities to retract the incorrect privatization list and address the Company's serious concerns regarding the unacceptable overstep into Kazatomprom's business as a publicly listed company. It should be noted that in accordance with current legislation, Kazatomprom's share in the uranium mining company JV Budenovskoye cannot be less than 50% (currently at 51%).
Additionally, media reports regarding a meeting between representatives from Kazakhstan and the Russian State Atomic Energy Corporation Rosatom ("Rosatom") indicated that the two sides exchanged views on energy security and cooperation, with Rosatom expressing an interest in further investment in Kazakhstan's uranium mining industry. However, any changes affecting the current structure of the Company's asset portfolio must adhere to current legislation of the Republic of Kazakhstan, existing practices of corporate governance, Kazatomprom's strategic objectives, and current restrictions related to international sanctions. In the face of the current geopolitical risks and uncertainty, the Company's Board of Directors will ensure appropriate governance is in place to protect minority shareholders, effectively manage risks and create long-term value for all of its stakeholders.
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The full version of the press release is posted on KASE website:
[2022-05-23]