Alliance Bank JSC (Kazakhstan) explains reasons why government participates in its authorized capital

/IRBIS, Andrey Tsalyuk, December 8, 04, / - In connection with trades of state blocks of shares (SBS) of Alliance Bank JSC (Almaty) at Kazakhstan stock exchange (KASE), and also in response to inquires regarding this blocks of shares, Alliance Bank JSC Department on connections with people assimilated today pres-release, where reasons of participation of the government in its authorized stock are explained. Particularly it is informed that the above blocks of shares were transited to government due to non-execution of obligations on taxes and other compulsory payments to budget by one of the former private shareholders of Alliance Bank JSC. "To comment this question in details Alliance Bank JSC Department on connections with people considers impossible, as it is told here about financial economical activity of enterprise that is not connected with the bank, who is separate legal entity, which also not a member of its shareholders", - press-release says. At the same time Alliance Bank JSC Department on connections with people states that, Alliance Bank JSC from the moment of primary registration of legal entity in July 1999 under the name of OJSC Irtyshbusinessbank was private financial institute, established and fulfilling its activity without participation of the government. The government does not have any other stake in authorized capital of Alliance Bank JSC, besides SBS, displayed for KASE trades (12,955 common shares with nominal KZT10,000, that is 1.85% from total number of floated shares of the bank). We will remind that initiator of SBS trades is Committee of government property and privatization of Ministry of finance of the Republic of Kazakhstan, which through the mediation of Information-stocking center RGE (Almaty) presented blocks at exchange trades under code NZ_ASBN indivisible by lot. Trades on sale of NZ_ASBN were open at KASE on December 3 of the current year. Still blocks are not sold, as participants of trades cannot achieve price compromise. The best price did not exceeded KZT9,500.00 for share, supply - did not fall lower than KZT12,800.00 for share. Trades of NZ_ASBN will be continued at KASE till December 31 of the current year. According to information of Alliance Bank JSC Department on connections with people authorized capital of financial institute as on December 1, 2004 equaled to KZT7 bn. On November 25, 2004 Agency of the Republic of Kazakhstan for regulation and supervision of financial markets and financial organizations made state registration of emission of announced shares of Alliance Bank JSC with nominal KZT10,000. Emission was divided into 1,750,000 common shares and 50,000 preference shares. This implies that authorized capital of the bank is planed to be increased from KZT7 bn. to KZT28 bn., and it will happen during 2004 and 2005. Decision about increase of authorized capital was taken by shareholders of Alliance Bank JSC at prescheduled meeting on September 28, 2004. According to information in press-release, total number of shareholders of Alliance Bank JSC is 39 legal entities and individuals, who are residents of the Republic of Kazakhstan. Interests of shareholders are represented by the Board of Directors: - Chairman of the Board of Directors Mazhinov Igor Sharipkanovich (deputy general director of Corporation HOZU LLP); - member of the Board of Directors Popelyushko Anatoliy Viskhanovich (president of Rahat JSC); - member of the Board of Directors Satbayev Kabyltai Dautkulovich (executive director of Center for complex development Sary Arka, Astana ; ) - member of the Board of Directors Yertayev Zhomart Zhadygerovich (chairman of the Board of Alliance Bank JSC); - member of the Board of Directors Ashlyaev Kazbek Sopyzhanovich (Chairman of the Board of Directors of Stroyzhilinvest JSC). As of December 1, 2004 assets of Alliance bank JSC equaled to KZT105.4 bn., liabilities - KZT97.3 bn., shareholders equity - KZT8.1 bn. "In comparison with the beginning of the current year there is more than twice growth of this indexes", - bank's press-release says. During 11 months of 2004 the bank earned net profit in the amount of KZT872.7 m., what almost three times more than net profit, earned for the similar period of 2003. [2004-12-08]