Shares of Kazakhtelecom JSC (Kazakhstan) have a big growth potential, it is certain in Holding Samruk JSC

/INTERFAX-KAZAKHSTAN, Astana, December 20, 06, title of IRBIS/ - In Kazakhstan holding on managing state assets Samruk JSC it is not doubted that shares of Kazakhtelecom JSC have a large growth potential of its market value. "From our standpoint, shares of Kazakhtelecom JSC have the sufficiently large growth potential taking into account several factors," stated Beybit Akhabayev, the chief director of Samruk by Kazakhtelecom JSC, the chairman of the board of this telecommunication company, at a press conference in Astana on Friday. First of all, he noted Samruk has "potential value" estimations of mobile operator GSM Kazakhstan (49% belong to Kazakhtelecom JSC), prepared by "authoritative western financial institutions". "Must say that the potential estimation of our share and the reflection of this share in the financial statements of Kazakhtelecom JSC are not comparable. Later in any case we will strive for that the real value of GSM Kazakhstan was reflected both in the value of Kazakhtelecom and in the value of shares of Kazakhtelecom," stressed B. Akhabayev. He also expressed his doubt in the probability of the national company's restructuring, about which the Kazakhstan government announced before. "Holding Samruk always came out in favor of integrity of Kazakhtelecom in terms of liberalization of telecommunication market. I think that as a result of "public" offering of shares issue of Kazakhtelecom's restructuring, even if it can be considered, only taking into account interests of minority shareholders, whom there are more than 10 thousand in the company," emphasized B, Akhabayev. He also paid attention to good development perspectives of companies of telecommunication sector, in which Kazakhtelecom has shares: Nursat JSC, Mobile Telecom Service LLP (MTS) and Altel JSC. "It is expected that this year Nursat JSC will increase net income 4 times. Already today we face potential investors and they offer to participate in the joint development of Nursat JSC or are ready to consider opportunity of company's acquisition at the cost that substantially exceeds purchase price," said a representative of Samruk. What for MTS - the third mobile operator at standard GSM-900, starting of which is expected at the beginning of 2007, B. Akhabayev noted that taking into account the necessity of substantial initial investments in its network development, "currently successful negotiations are carried out with a possible minority financial investor about combined participation in this project". "We are sure that this investment will be successful for Kazakhtelecom as well" he resumed. Currently two mobile operators function in Kazakhstan in GSM standard: Kar-Tel LLP (with K-Mobile and Beeline trademarks; is controlled by Russian Vimpelcom) and GSM Kazakhstan (with K'Cell and Activ trademarks; shareholdera are Finnish-Swedish-Turkish FinTur and Kazakhtelecom JSC). At the same time company Altel ("daughter" of Kazakhtelecom, Dalacom and PAThWORD trademarks) renders services of mobile communication in CDMA standard. As it was reported, Samruk completed subscription of common state shares of Kazakhtelecom, which are sold among the population. In accordance with the resolution of the government dated October 17, 2006 a decision was adopted about sale of 4.6% of common voting state shares of Kazakhtelecom - in all 497597 items, at the domestic market of the republic. 90% of this shareholding (447837 shares) is assigned for sale to the public, and the rest (49760 shares) will be sold later at an organized (exchange) market. The entire state shareholding of Kazakhtelecom (55.6%) is in the management of the stateholding Samruk. Price range of marketed shares was fixed at KZT25-33 th., bids for purchase were admitted from November 30 to October 10 in departments of Kazpost JSC throughout the republic from an unlimited number of individual people. Investment financial house Resmi JSC acted as the financial consultant of the state holding Samruk at the offering of given shares. Shares of Kazakhtelecom JSC have been included in Kazakhstan stock exchange' (KASE) official "А" listing category. Kazakhtelecom is the leading operator of Kazakhstan, which takes the dominating position at the domestic telecommunication market. Shareholders with ownership ratio of common shareholding of Kazakhtelecom JSC along with the state are BODAM B.V. (16.9%), The Bank of New York (10.2%), Сentral Аsian Industrial Holdings N.V. (9.6%). Board of the state holding Samruk, established by the order of the head of the state in January of this year, currently has state shares of five companies: Kazakhtelecom, Kazpost JSC, companies on managing electric networks KEGOC JSC, oil and gas company NC KazMunayGas JSC and the railway company Kazakhstan temir zholy JSC (KTZh). Kazpost, KEGOC, KazMunayGas and KTZh are completely state companies. Besides, according to the resolution of the government dated October 24, state shares of 17 more companies must be transferred to the state holding, including strategic fields of economy, in particular, Kazakhstan-British JV Air-Astana (state-owned shareholding 51%). [2006-12-20]