«Samruk-Kazyna» JSC will sell another 17 assets.
This year within the framework of privatization program «Samruk-Kazyna» JSC will put 17 assets up for sale, among them such large companies as «KazTransGas Aymak» JSC, «Alatau Zharyk company» JSC, «Almaty power plants» JSC, «AlmatyEnergoSbyt» LLP and «Tegis Munai» LLP. The Fund admits that because of a challenging situation in the country’s economy they will have to make adjustments in the plans. Meanwhile the state is also ready to meet the future investors halfway and to simplify the privatization procedure.
Last year was challenging for Kazakhstani’s economy. Furthermore, based on the experts’ forecasts, no positive changes are to be expected this year. The world, an integral part of which is Kazakhstan, is entering the turbulence zone. However, the government is ready to implement additional measures to motivate the investors for investing into domestic economy.
According to Daulet Shagirov, head of the state property sale and privatization follow up control department of the Committee of state property and privatization of the Ministry of Finance of Kazakhstan, this year the agency has also developed draft changes to the rules of selling state assets, which will give organizers an opportunity to simplify the bidding procedure. The changes are related to guarantee deposit, meaning the sum of money, which each participant of the bidding has to place as a collateral. If earlier, according to Daulet Shagirov, potential investors had to provide 15% of the value of the asset for sale, regardless of the value of appraisal, now, decision was made to set the upper threshold of 60 million Tenge.
«The payment of guarantee deposit presents challenges to participants of the bidding, because large amounts of funds have to be taken out of working capital for a period up to a month. For instance, if an asset costs 10 billion Tenge, this means 1.5 billion Tenge have to be taken out of the working capital, which is a difficult decision for any market player», - said Daulet Shagirov during the round table meeting «Second stage of privatization: first results of the Program and perspectives in new economic situation», which has been organized by the «Samruk-Kazyna» JSC in Almaty.
The round table meeting was organized for the purpose of drawing results of the Privatization program, which was launched in 2014 in accordance with the task of the Head of the State, and for the purpose of discussing various initiatives for successful implementation of this program with expert community and entrepreneurs. One in six assets sold within the framework of the program belongs to the Fund.
As Elena Bakhmutova, deputy chairperson of the Management Board of the «Samruk-Kazyna» JSC, mentioned during the meeting, 59 out of scheduled 64 assets were put up for sale in 2014, privatization timeline for another 5 assets was moved to 2016. Up to now, 24 assets were sold with a total amount over 24 billion Tenge, which significantly exceeds the appraised value. Another 17 assets of the Fund’s Group will be put up for sale in 2015.
However, the Fund representatives emphasize that it is not the task of selling the companies by any means. «There are several probable scenarios of dealing with the unsold assets. Specifically, in case of adverse external and internal economic conditions, the Fund may make a decision to move or adjust the timeframe for sale of the assets. At the same time, the interests of the sole shareholder, namely the Government of the Republic of Kazakhstan, will be preserved», - said Elena Bakhmutova. She also emphasized that during privatization, the Fund pays much attention to economic efficiency, and the fate of the unsold companies will be decided based on this principles.
In opinion of Olzhas Khudaybergenov, the director of the Center for macroeconomic studies, an obvious advantage of the current privatization program is its transparency: starting from the pre-sale preparation of assets to the sale itself. However, the expert warns, that a significant risk for Privatization program is the fact that its start coincided with the start of the crisis processes in global economy. «Businessmen are not willing to make investment decisions in the environment of uncertainty and the devaluation expectations have added to those factors», - said the economist.
Brief information. In 2014, SWF «Samruk-Kazyna» has put 59 out of scheduled 64 assets up for sale. The timeframe for sale of five assets was moved to 2016. As of now, 24 assets have been sold with a sum over 24 billion Tenge, which exceeds the appraisal value by 1,35 times. In general, privatization of 106 assets and facilities of the fund is planned till 2020.