“Samruk-Energy” JSC | Integrated annual report
The program of assets privatization

Kairat Maxutov

Managing Director for economy and finance of “Samruk-Energy” JSC

Today“Samruk-Energy” JSC is the largest diversified power holding company successfully integrated into international energy mix, forming a highly efficient power supply system as well asensuring sustainable development of all sectors of Kazakhstan.

As is known, the work on transfer of some of the Company’s assets to a competitive environment is underway. According to the Decree of the Government of the Republic of Kazakhstan dated December 30, 2015 No. 1141 “On some matters of privatization for 2016–2020” (hereinafter – the Decree), and also by the decision of “Samruk-Kazyna” JSC Management Board dated 20.01.2016, the assets of “Samruk-Energy” JSC group of companies were divided into lists:

The Company’s assets included in No.1 List:

  • “Aktobe CHP” JSC;
  • “EK REC” JSC (which comprises “Shygysenergotrade” LLP);
  • “MDPGC” JSC;
  • “AZhC” JSC;
  • “APP” JSC;
  • “AlmatyEnergoSbyt” LLP;
  • “Tegis Munay” LLP (which comprises “MangyshlakMunay” LLP).

The Company’s assets included in No.2 List:

  • “Karagandagiproshakht and Co.”;
  • “Shelek-28” LLP

List No.1 – large assets of social and economic importance, possession and (or) use and (or) management of which will have an impact on the state of the Republic of Kazakhstan’s national security, proposed for transfer to a competitive environment in priority manner.

Pursuant to the Uniform Rules for sale andrestructuring of assetsby “Samruk-Kazyna” JSCand organizations, more than fifty percent of voting stock (equity stake) of which directly or indirectly belongs to “Samruk-Kazyna” JSC, No.1 list’s assets are privatized in accordance with recommendations of an independent Consultant.

In this respect, “Samruk-Energy” JSC engaged“KPMG Tax and Advisory” LLP as an Independent Consultant in regard to No.1 List companies; the independent consultant is responsible for supporting all activities related to assets privatization, including: pre-sale diagnostics, cost analysis /assessment of market value, making recommendations regarding conditions for sale of assets, completion of deals.

According to recommendations of the independent consultant, the State Committee for modernization of economy determined an open two-stage tender for sale of companies: “Tegis Munay” LLP (which comprises “Mangyshlak Munay” LLP), “Aktobe CHP” JSC; “East Kazakhstan Regional Energy Company” JSC (which comprises “Shygysenergotrade” LLP); “Mangistau Distribution Power Grid Company” JSC.

In this connection, the Company published notices on sale of these companies in November 2016. No.2 List Companies include assets offered for sale in a competitive environment in a simplified manner, through an electronic auction on the trading platform www.gosreestr.kz.

Bids for the sale of 90, 0004 % of equity stake in “Karagandagiproshakht and K” LLP and 70 % stake in “Shelek-28” LLP were successfully held on June 30, 2016.

We plan to pursue the implementation of privatization program in 2017.

“Samruk-Energy” JSC | Integrated annual report
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