Kazakhstan may receive $200m from privatization in 2001

/IRBIS, Oct 4, 01/ - REUTERS informs, with the reference to the Ministry of Finance, that sales of state blocks in Halyk Bank and Kazakhmys (copper) will let Kazakhstan to receive about $200m in 2001. First deputy of the chairman of State Property and Privatization Committee of the Ministry of Finance, Eduard Utepov, states that total income from selling the shares of these two companies will reach KZT30 bn, while the plan was at KZT38 bn. The tender offer on sales of 33.3% state block in Halyk Bank of Kazakhstan was first schedules for summer, then postponed to October 17, and recently it has been postponed again and sales procedure has been changed. This sale should bring another $20m at least, is said. Initially it was planned to sell the whole block at the auction, though later it was decided to sell part of the block to strategic investor and part at the Exchange. He said that final version of the sales procedure has not been determined yet. It is likely to be 15% at the Exchange, and 18.3% at tender offer, he added. It was said that apart from Kazkommertsbank and consortium Kazakhstani investors, another commercial structure from South Kazakhstan region, bank from Central Kazakhstan and investment company expressed their willingness to participate at the tender offer. The state block of Halyk Bank is expected to be sold at a reasonable price. I fear to make any forecasts because the statements made in mass media makes me unsure about the price of $60m that could be paid for the block because it may not worth that much, he said. It is expected that state block of Kazakhmys, which is the major copper producer in Kazakhstan, can be sold using the same method, and since these shares "are quite expensive" part of them could be sold at the Exchange to determine the market value. However, no figures were given regarding the proportions of the 35% state block of Kazakhmys that can be sold. The company produces more than 90% of the copper in Kazakhstan and is 42.4% owned by South Korean Samsung. It was added that privatization revenues plan will not be met this year, though the government will find something to sell. It may not be KZT38 bn, but KZT36-37 bn could be found if necessary, he added. He believes that state blocks of attractive metallurgical and oil companies of Kazakhstan, with no external debt burden and those receiving great income for the second year are "golden reserve" of the country and in case of acute need in funds the government may go for the borrowing not the sales of state blocks. It is not the goal to get more from privatization, since what is left is not interesting and thousands of objects are sold for a little money. There are few companies whose shares worth more, but there is a question whether to sell them or not, he added.