15.5 percent Government's stake in UKTMC OJSC: results of privatization held from January 26 to January 30

/KASE, January 30, 04/ - At Kazakhstan Stock Exchange (KASE) trades involving the sale of State Package of Shares (government's interest) of UST-KAMENOGORSK TITANIUM MAGNESIUM COMBINE Open Joint Stock Company (UKTMC OJSC, Ust-Kamenogorsk), consisting of 167,260 common shares (NIN - KZ1C05502017) that are publicly traded in KASE's official "A" listing category under UTMK code, were finally closed today. Government's package comprised 15.5% of total paid-in shares of UKTMC OJSC or 17.22% of total voting shares. TERMS OF TRADES AND SETTLEMENT PROCEDURES Trades lasted for 4 days from January 26 to January 30 of 2004 and were initiated by the Committee of state property and privatization under the Ministry of finance of the Republic of Kazakhstan (the Committee) with the help of authorized seller of the state package - KIB ASSET MANAGEMENT Ltd. JSC (Almaty) - the brokerage firm. The state package was divided in two parts for convenience sake. One part, consisting of 107,910 shares (64.5% of total government's interest in the company or 10.0% of total outstanding shares of UKTMC OJSC), was offered for sale in a single indivisible lot under NZ_UTMK_10 code. In order to take part in trades, a potential buyer should have transferred security bid at corresponding account of KASE before trades were opened in amount of KZT140.0 m. Another part of the package, consisting of 59,350 shares (35.5% of total government's interest or 5.5% of total number of outstanding shares of UKTMC OJSC) was offered for retail sale (one lot consisted of one share) under NZ_UTMK_5.5 code. Security bid amount for these trades was KZT1,000 per share. Trades were held within rules of trade session in corporate securities from 11:30 a.m. till 17:00 p.m. of Almaty time by open trades method in compliance with section II of "Description of methods for organizing trades", KASE's internal document. Whenever bid and ask price converged in the course of open trades, trading system of KASE were automatically opening trades in a given instrument exploring Frankfurt's method for 15 minutes (article 3, paragraph 1, section IV, "Description of methods for organizing trades"). During such trades, potential buyers competing with each other were given a chance to submit bids with higher prices. Trades by Frankfurt's methods were being automatically closed in 5 minutes from the moment of the last bid submission, its modification or annulment by the parties involved in trades. In addition, if trades on any lot by Frankfurt's method were launched later than 16:45 p.m. of ALT, they were extended until a bid conclusion, but not later than 18:00 p.m. All lots at KASE were quoted tenge denominated per one share up to second decimal. The Committee put no restrictions for investors. Shares could be purchased by any physical or juridical persons, either residents or nonresidents of the Republic of Kazakhstan. Settlements by trades results had to be cleared in compliance with article #7 of internal document of KASE "State package of shares. Procedures for admission to the trades and settlements by trade results". According to this document, the amount of a deal, excluding either commissions to KASE and security bid provided earlier (which potential buyer had to transfer to the exchange's account before trades started), should have been transferred by securities purchaser to a corresponding account of Central Depository of Securities CJSC (Almaty) within seven working days from the moment of a deal conclusion. TRADES RESULTS NZ_UTMK_10 was offered for sale on January 26 and sold at the same day within a single deal for KZT777,167,820.00 (equivalent of $5,571,095.48 at current exchange rate) at KZT7,202.00 per share ($51.63). Two members took part in trades: brokerage-dealer firms acting under instructions of their clients. Bid prices varied between KZT730.00 and KZT15,000.00 per security. NZ_UTMK_5.5 was offered for sale on January 26. Interested parties had been working on it daily until January 30, on which last trades were held. The package was sold in 6 deals: - Jan 28, 04 - 5,395 shares at KZT10,200.00 per stock for a total amount KZT55,029,000.00; - Jan 29, 04 - 5 shares at KZT8,251.00 per stock for a total KZT41,255.00; - Jan 29, 04 - 5,390 shares at KZT8,251.00 per stock for a total KZT44,472,890.00; - Jan 30, 04 - 5,395 shares at KZT9,003.00 per stock for a total KZT48,571,185.00; - Jan 30, 04 - 37,770 shares at KZT9,100.01 per stock for a total amount KZT343,707,377.70; - Jan 30, 04 - 5,395 shares at KZT9,100.01 pre stock for a total amount of KZT49,094,553.95. After trades completion, the state budget is expected to realize KZT540,916,261.65, equivalent of USD3,880,039.18 at weighted average exchange's tenge rate to dollar effective as of January 30 (KZT139.41 per $1). Weighted average price at which NZ_UTMK_5.5 was sold equals KZT9,114.01 per security ($65.38). Three buyers took part in trades - brokerage - dealer firms acting under instructions of their clients and one pension assets management company. Prices stated in bids varied between KZT20.00 and KZT15,000.00 per security. In total, by selling its stake in UKTMC OJSC, the government is expected to receive KZT1,318,084,081.65 (nearly $9.4 m). Weighted average price at which all (related) deals were concluded is KZT7,880.45 per one share ($56.53). [2004-01-30]