Kazakhtelecom seeks higher price for its shares

/IRBIS, Sep.20, 00/ - As REUTERS informs, Karim Masimov ex-chief of Halyk Bank Kazakhstan and, presently, Minister of Transportation and Communications considers that privatisation of Kazakhtelecom (national communications operator) should be conducted at higher price for its shares. He noted that present their value is somewhat understated and financiers should work on finding adequate price of the company. He also considers that new price could be two time higher, i.e. pre-crisis level of 1998. Kazakhstan has long had negotiations with international financial organisation over the privatisation issue. Whereas revenues from Kazakhtelecom privatisation were already considered in the budget-2000. Kazakhtelecom is the monopolist on telecommunication market of Kazakhstan. Its share in GDP formation is 2%. Authorised capital equals to KZT12.1 bln, authorised capital - KZT33.5 bln. The main shareholder of Kazakhtelecom is the government holding 50% stake. The next one is a group of affiliated with Kazkommertsbank companies. Another 10% of ordinary and 105 preferred shares are in circulation at the stock exchange market. Previously this year, European Bank for Reconstruction and Development offered the government to sell 30% stake in the company.