INTERVIEW: Kazakhstan to offer firms for sale to Russia soon

MOSCOW, May 15 (PRIME) -- Kazakhstan’s Sovereign Wealth Fund Samruk-Kazyna plans to privatize about 200 strategic companies and will offer some of them to Russian investors at the St. Petersburg International Economic Forum, managing director for transformation, privatization and restructuring Nurlan Rakhmetov said in an interview with PRIME on Tuesday.

At the forum, to take place on May 24-26, investors will be offered stakes in international airports in the cities of Pavlodar, Aktobe and Atyrau, a 100% stake in power producer Samruk-Energo, which holds a 30% market share and owns some coal assets, air carrier Qazaq Air, some assets controlled by national railroad operator Kazakhstan Temir Zholy, the United Chemical Company, as well as mining company Tau-Ken Samruk.

Kazakhstan is willing to sell off these businesses until the end of 2018, and it is actively negotiating with investors and holding road shows in London, Hong Kong and Shanghai.

Kazakhstan also plans to sell several companies on the open market using an initial public offering (IPO) mechanism in 2018-2020.

IPOs of nuclear company Kazatomprom, flagship air carrier Air Astana, and a secondary public offering of telecommunication Kazakhtelecom are scheduled for 2018. Kazakhtelecom is traded on the local stock exchange and may be listed internationally. The offerings may take place in London, Hong Kong or New York. The Moscow Exchange is another option.

An IPO of national oil producer Kazmunaigaz may be held in 2019-2020.

The state intends to sell up to 25% stakes in Kazatomprom, Kazakhstan Temir Zholy and Kazmunaigaz, but the figure may be adjusted.

Rakhmetov said that his fund does not focus on investors from specific states or regions, the maximum price and the buyer’s reliability being the priority. The U.S. sanctions are an issue of close consideration while choosing an investor, an individual approach is necessary in each case, Rakhmetov said.

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