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National Managing
Holding "Baiterek"

Privatization

1. GENERAL INFORMATION OF THE COMPREHENSIVE PRIVATIZATION PLAN FOR 2016-2020;

Comprehensive plan of privatization for 2016-2020 approved by the decree of the Government of the Republic of Kazakhstan No1141 "On some questions of privatization for 2016-2020" dated December 30, 2015 (hereinafter referred to as - Comprehensive plan) is the key element in transformation of economic strategy of Kazakhstan.

Comprehensive plan is focused on support of economic growth of Kazakhstan under lower prices of commodities in the framework of entering into World Trade Organisation and planned joining Top-30 developed countries and Organisation for Economic Co-operation and Development (OECD) in the near future.

The main objective of privatization program is efficiency increase of asset management by reducing the state's share in the economy to 15% in GDP in the medium and long term.

New plan covers privatization of Top-65 state organisations, companies and institutes of national development, as well as about 700 subsidiaries, affiliated companies, as well as republican and social assets.

Privatization program provides different forms of sale - from electronic auctions till direct targeted sales. Privatization schedule will depend upon dominant market environment and interest of the state and private investors in assets. It is expected, that after acquisition of companies potential investors will continue actively invest in the economy of the country.

2. LINKS TO THE SITES AND PRESENTATIONS OF COMPANIES SUBJECT TO PRIVATIZATION:

"Baiterek National Management Holding" JSC (hereinafter referred to as - "Baiterek NMH" JSC) plans to sell stake in three subsidiary organisations: "House Construction Savings Bank of Kazakhstan" JSC, «KazakhExport» Export insurance company» JSC, "National Agency for Technological Development" JSC, seven subsidiary affiliated organisations of "Investment Fund of Kazakhstan" JSC, as well as seven subsidiary affiliated organisations of "National Agency for Technological Development" JSC.

  • "House Construction Savings Bank of Kazakhstan" JSC
    - is the only bank in the country, successfully implementing the principles of housing construction savings system (HCS system) since 2003. HCS system is aimed to improve the living conditions of the population by attracting depositors' money to housing construction deposits and granting housing loans.

    House Construction Savings Bank of Kazakhstan (the Bank) is the operator of affordable housing State Programme “Nurly Zher”. The law “On housing construction savings in the Republic of Kazakhstan” ensures to depositors the State premium (the maximum amount of 20% of the deposit amount up to 200 monthly calculation index, MCI). One of the strategic objectives of the Bank is to increase the share of participants of HCS system to 17% of the economically active population in 2024, which amounted to 9.6% at the end of 2016.

    The House Construction Savings Bank of Kazakhstan has 17 regional branches, 15 service centres and 12 service points in all regions of the country and major cities, more than 1,100 agents-individuals (consultants).

    As of January 1, 2017 the number of active HCS contracts is 815 thousand contracts with savings of 407 billion tenge (65% of balance sheet total). Since 2003 the Bank totally issued loans to 129 thousand customers in the amount of 608 billion tenge.

    Credit ratings of the House Construction Savings Bank of Kazakhstan are the best among the second-tier banks. Rating from Moody's - “Baa3”, rating from Fitch - “BBB-”.

    House Construction Savings Bank of Kazakhstan is a member of two international organisations such as European Federation of Building Societies and International Union for Housing Finance.

    Since 2015 House Construction Savings Bank of Kazakhstan JSC has been cooperating with the largest Bausparkasse in Germany - Bausparkasse Schwäbisch Hall. This Bausparkasse operates on European lending market for over 80 years successfully implementing the HCS system.

    The House Construction Savings Bank of Kazakhstan is a stable financial institution with its main objective to ensure equal access for the general population to the HCS system in all regions of the country and to provide high quality banking services for improving the living conditions.

    Website: www.hcsbk.kz

    «House Construction Savings Bank of Kazakhstan» JSC.pptx

  • "National Agency for Technological Development" JSC
    is the company, the mission of which is effective support to innovation activity in the country. The main fields of activity of the company are:

    • Financial supporting of innovative projects;

    • Development of innovative infrastructure;

    • Development of the international network of partners;

    • Encouragement of innovative processes by means of information and analysis support.

    In the framework of "NATD" JSC 8 design bureaus and 4 technoparks operate.

    Website: www.natd.gov.kz

    National Agency for Technological Development JSC.pptx

  • "Investment Fund of Kazakhstan" JSC
    is the state institute for development and holding company in the field of restructuring and distressed asset management. Strategic goal is to increase efficiency of the state investments and improve general investment practice of national institutes for development.

    Website: www.ifk.kz



3. ANNOUNCEMENT OF TENDER;

Announcement of tender and auction:

13.02.2017 - Investment Fund of Kazakhstan announced about forthcoming auction on the sale of 44% of share in "Rannila Kazakhstan" JSC.
The company is producing sandwich panels.
Method of sale: Dutch auction
Date of auction (second part of bidding): April 4, 2017
Shareholders:
44% - Investment Fund of Kazakhstan,
56% - "Rannila Kazakhstan" LLP
For more information please visit e-portal www.gosreestr.kz

13.02.2017 - Investment Fund of Kazakhstan announced about forthcoming auction on the sale of 39% of share in "Myrzabek Altyn Tas Group" JSC.
The company is producing reinforced concrete structures and precast structures.
Method of sale: Dutch auction
Date of auction (second part of bidding): April 4, 2017
Shareholders:
39% - Investment Fund of Kazakhstan,
61% - "Myrzabek" LLP
For more information please visit e-portal www.gosreestr.kz

13.02.2017 - Investment Fund of Kazakhstan announced about forthcoming auction on the sale of 44.57% of share in "Irtysh Chemical and Metallurgical Plant" JSC.
The company is producing rare metals and alloys on their basis.
Method of sale: Dutch auction
Date of auction (second part of bidding): April 4, 2017
Shareholders:
44.57% - Investment Fund of Kazakhstan
55.43% - "KAZNIOBIY IKHMZ" LLP
For more information please visit e-portal www.gosreestr.kz

13.02.2017 - Investment Fund of Kazakhstan announced about forthcoming auction on the sale of 29.77% of share in "Ural Metal Construction and Galvanizing Plant" JSC.
The company is providing services on hot galvanizing of metal constructions.
Method of sale: Dutch auction
Date of auction (second part of bidding): April 4, 2017
Shareholders:
Investment Fund of Kazakhstan - 29.77%
"SPP Metalloizdeliya" LLP - 29.53%
"RIC Gradient" JSC - 40.70%
For more information please visit e-portal www.gosreestr.kz

13.02.2017 - Investment Fund of Kazakhstan announced about forthcoming auction on the sale of 42.34% of share in "White Fish of Kazakhstan" JSC. The company is cultivating, processing and packing fish products.
Method of sale: Dutch auction
Date of auction (second part of bidding): April 4, 2017
Shareholders:
Investment Fund of Kazakhstan - 42.34%
"Laim Group" LLP - 57.66%
For more information please visit e-portal www.gosreestr.kz

13.02.2017 - Investment Fund of Kazakhstan announced about forthcoming auction on the sale of 100% of share in "A-KBK" LLP.
The company is processing fish product/
Method of sale: Dutch auction
Date of auction (second part of bidding): April 4, 2017
Shareholders:
Investment Fund of Kazakhstan - 100%
For more information please visit e-portal www.gosreestr.kz

13.02.2017 - Investment Fund of Kazakhstan announced about forthcoming auction on the sale of 100% of share in "Pams Pipe" JSC.
The company is producing anti-corrosion coating for steel pipe.
Method of sale: Dutch auction
Date of auction (second part of bidding): April 4, 2017
Shareholders:
Investment Fund of Kazakhstan - 100%
For more information please visit e-portal www.gosreestr.kz

4. CONTACT DETAILS IN THE HOLDING AND SUBSIDIARY ORGANISATIONS SUBJECT TO PRIVATIZATION;

Contact our team if you have any additional questions and requests:

"Baiterek NMH" JSC
Nurmukhamet Kanture
Project manager
Investor Relations Department
Tel:. +7 7172 27-04-11
email: n.kanture@baiterek.gov.kz

"House Construction Savings Bank of Kazakhstan" JSC
Aidana Sayfullayeva
Chief specialist
Department of planning and strategic analysis
Tel: +7 727 279 35 11 00388
email: saifullayeva.a@hcsbk.kz

Aibar Olzhayev
Press-secretary
Department for advertising and public relations
Tel: + 7 727 279 35 11 00373
email: olzhayev.a@hcsbk.kz

"National Agency for Technological Development" JSC
Ruslan Abdulbakiyev
General manager
Department for strategic planning and monitoring
Tel: +7 7172 57 10 14 226
email: Ruslan.Abdulbakiyev@natd.gov.kz

"Investment Fund of Kazakhstan" JSC
Syrym Nurgaziyev
Manager
of Department of Investment projects
Tel: +7 7172 55 95 96 331
email: Nurgaziyev@ifk.kz

5. NORMATIVE-LEGAL ACTS;

Reference to the Decree of the Government of the RoK No1141.

Reference to the Transfer regulations of more than 50% of voting shares (interests in the share capitals), which directly or indirectly belong to "Baiterek National Management Holding" JSC on the right of ownership, into the competitive environment of assets of "Baiterek National Management Holding" JSC and organizations.

6. LETTER OF RESPONSIBILITY;

Information published on the Internet resource of "NMH 'Baiterek" JSC does not have periodic nature and refers exceptionally to the operations of "Baiterek NMH" JSC. All information and data published on the site and in its sections have exclusively informational intention and is not a public offer, unless otherwise is specified in the concrete materials.

Terms of use of the site apply to all users. Fact of visiting the site (use of resources and materials of the site) by the user confirms his consent with terms of use of the site in full without any exceptions and limitations.

"Baiterek NMH" JSC reserves limited right to change any information published on the site including information about services provided by "Baiterek NMH" JSC, as well as current terms of use of the site at any time at its sole discretion without prior notice of the users.

The user bears the risk of negative consequences as a result of using recommendations, opinions and statements contained on the site in full. "Baiterek NMH" JSC does not guarantee and does not confirm the accuracy and truthfulness of recommendations, opinions and statements contained on the site. "Baiterek NMH" JSC does not bear responsibility for any losses (direct or indirect) occurred as a result of using the information provided on the site, as well as losses occurred as a result of use or impossibility of use of services provided by "Baiterek NMH" JSC, even in those cases, when the user was warned by "Baiterek NMH" JSC about such losses.

"Baiterek NMH" JSC provides the users with the right to copy documents and materials published on the site, exceptionally for personal purposes without subsequent distribution of documents and materials to third persons or any other commercial use. 

Copying any materials of the site, the user agrees to respect the author's rights of the used materials and make correspondent print-outs including date of publication, if it is specified on the site, as well as specify the date of copying the information. 

References to products and services of third persons are given on the site only for informational purposes and do not mean, that "Baiterek NMH" JSC supports them, controls or recommends. 

Shifts to any other informational resources, links that published on the site are carried out at the user's discretion. "Baiterek NMH" JSC includes links to other Internet-resources exceptionally for convenience of the users, however "Baiterek NMH" JSC does not perform systematic monitoring of the content of such resources and does not bear any responsibility for accuracy and relevance of information, data, opinions, pieces of advice or announcements published on them in this regard.


Frequently Asked Questions

  • 1. What does privatization mean?

    Privatization is the type of activity when the state sells the state property to private individuals, non-state legal entities in the framework of specific procedures established by the Law of the Republic of Kazakhstan "On State Property".

  • 2. What kind of assets are transferred to the competitive environment?

    According to the Decree of the Government of the Republic of Kazakhstan No. 1141 dated December 30, 2015 "On some questions of privatization for 2016-2020", the following assets of "Baiterek National Management Holding" JSC are transferred to the competitive environment:

    • "House Construction Savings Bank of Kazakhstan" JSC;

    • “KazakhExport” JSC;

    • "National Agency for Technological Development" JSC;

    • 7 subsidiary companies of "National Agency for Technological Development" JSC;

      • "Technopark "Algoritm" LLP in Uralsk;

      • "Technopark "Sary-Arka" LLP in Karaganda;

      • "Technopark KazNTU named after K.I. Satpaev" LLP in Almaty;

      • "East Kazakhstan regional technopark "Altay" LLP in Ust-Kamenogorsk;

      • "Design Bureau of Transport Machinery" LLP in Astana;

      • "Design Bureau of oil and gas equipment" LLP in Petropavlovsk;

      • "Design Bureau of oil and mining and smelting equipment" LLP in Ust-Kamenogorsk;

    • 8 subsidiary companies of "Investment Fund of Kazakhstan" JSC:

      • "Doszhan Temir Zholy" JSC *

      • "A-KBK" JSC

      • "Ural Metal Construction and Galvanizing Plant" JSC

      • "Irtysh Chemical and Metallurgical Plant" JSC

      • "Myrzabek Altyn Tas Group" JSC

      • "Rannila Kazakhstan" JSC

      • "Pams Pipe" JSC

      • "White Fish Kazakhstan" JSC

      * - privatization of "DTZ" JSC is temporarily suspended

  • 3. What kind of methods of realization of property/assets are provided?

    According to the Transfer regulations of more than 50% of voting shares (interests in the share capitals), which directly or indirectly belong to "Baiterek NMH" JSC, into the competitive environment of assets of "Baiterek NMH" JSC and organizations, the following methods are applied:

    1) sales (forms: auction, tender);

    2) competition through two-stage procedures:

    3) direct targeted sale;

    4) trade with stock exchange.

  • 4. How is the sale through electronic auction carried out?

    electronic auction - electronic auction (hereinafter referred to as - auction) - is the form of sales on the web-portal of register, where participants declare their offers in public. Auction is carried out in two ways of trading: trading where price increases and trading where price decreases. At the auction starting price of sales item is equal to the initial price. The first time sales item is put up to auction, where the price increases.

    Note: source of information "Schedule of electronic trading for property sale on the web-portal of register of public property".

  • 5. How is the sale through tender carried out?

    Tender - is the form of sales, where participants announce their price offers uploading into electronic envelope on the designated web-page of the register. Tender should be open. Tender may be closed in the exceptional cases, concerning national security, environmental protection, external-economic condition of the Republic of Kazakhstan, determined by the Government of the Republic of Kazakhstan.

    Limited number of participants determined by seller or his commission can take part in the closed tender. Seller sends invitations to the closed tender with all terms of the closed tender. Record of applications of people, to whom the invitation is sent, and who wants to take part in the closed tender, is carried out on the web-portal of the register from the date of sending the written invitations and ends two hours prior to the start of the closed tender.

    Tender or closed tender are carried out on the web-portal of the register from Tuesday to Friday, except for public holidays and weekend, provided by the Law of the Republic of Kazakhstan. Tender or closed tender are carried out from 10:00 till 13:00 by Astana time. When the sales item is put up to the first tender (closed tender), starting price of the sales item is equal to initial price, and is determined by the seller at the second and subsequent sales.

    Note: source of information "Schedule of electronic trading for property sale on the web-portal of register of public property".

  • 6. How is the sale through competition carried out?

    Competition by means of two-stage procedures - is the method of asset realization, where the winner of the competition is determined by the seller and is carried out together with outside advisers.

    Involvement of an outside advisor is carried out in the open sales (auction, tender) for comprehensive analysis of object of privatization, its cost estimation and building its potential customers, information database about sales items.

  • 7. How is direct targeted sale carried out?

    Direct targeted sale of an asset is carried out to strategic investor, Kazakhstani or foreign legal entity (their associations), who meets the following criteria:

    - experience of the investor himself, and (or) his affiliates in the sphere related to the activities of the realized asset;

    - acquisition of a large block of shares (stakes in the authorized capital) to participate in asset management, as well as in the development through technology transfer (if any), including acquisition of undisclosed information (trade secret, know-how) and involvement of highly qualified specialists.

    Note: source the Transfer regulations of more than 50% of voting shares (interests in the share capitals), which directly or indirectly belong to "Baiterek National Management Holding" JSC on the right of ownership, into the competitive environment of assets of "Baiterek National Management Holding" JSC and organizations

  • 8. How is trade with stock exchange carried out?

    Trade with stock exchange is carried out in accordance with the Law of the Republic of Kazakhstan "On the stock market" and other normative legal acts.

    Note: source the Transfer regulations of more than 50% of voting shares (interests in the share capitals), which directly or indirectly belong to "Baiterek National Management Holding" JSC on the right of ownership, into the competitive environment of assets of "Baiterek National Management Holding" JSC and organizations

  • 9. Is the payment by instalments possible?

    Payment by instalments is accepted only in cases, when conditions of possible instalments are brought to the attention of the participants of sales beforehand. At the same time the size of initial instalment may not be less than fifteen percent of selling price, and period of instalment may not exceed three years.

    Note: source of information "Schedule of electronic trading for property sale on the web-portal of register of public property".

  • 10. Under what methods of privatization does the Seller establish the term of retaining the profile of activities?

    The Seller establishes the term of retaining the profile of activities by means of tender and direct targeted sale.

  • 11. What documents are required for participation in the trade?

    To take part in the trade it is necessary to register beforehand on the web-portal of the register specifying:

    1) for private individuals: Individual Identification Number (IIN), surname, name and patronymic (if available);

    2) for legal entities: business identification number (BIN), full name, surname, name and patronymic (if available) of the first chairman;

    3) details of bank account in the second-tier bank to return guarantee fee;

    4) contact details (postal address, telephone, fax, e-mail).

    If the details specified above are changed, participant changes the data on the web-portal of the register within one working day.

    Note: source of information "Schedule of electronic trading for property sale on the web-portal of register of public property".

  • 12. What is the size of the guarantee fee?

    Guarantee fee - is the sum of money in the amount of 15% of the starting price of the sales item, contributed by private individual or legal entity for participation in trading, but not more than 30,000-fold monthly calculation index.

    Note: source of information "Schedule of electronic trading for property sale on the web-portal of register of public property".

  • 13. What are terms of applications for participation in trading?

    Registration of participants is carried out on the web-portal of the register since the notification is published on the web-portal of the register and ends two hours prior to the trading.

    Note: source of information "Schedule of electronic trading for property sale on the web-portal of register of public property".

  • 14. Can the sole participant become the winner of trading?

    If the number of applications of participants of tender (closed tender), competition accepted by the web-portal of the register, or participants of competition approved for an auction by commission is less than two, or participants of tender (closed tender) approved by the seller is less than two, then the tender (closed tender), competition is declared invalid, except for third and subsequent trading, where the sales item can be sold to the sole participant.

    Note: source of information "Schedule of electronic trading for property sale on the web-portal of register of public property".

  • 15. What are terms of payment and conclusion of sale-and-purchase contract with the winner of trading?

    Sale-and-purchase contract is concluded between seller and buyer specifying the reference to the protocol of the results of trading as the ground for conclusion of sale-and-purchase contract.

    In the sale-and-purchase contract the seller specifies the term that the right of ownership of the sales item is transferred to the buyer after full payment.

    Payments under sale-and-purchase contract are carried out between the seller and buyer, at the same time the buyer performs payments in the following order:

    1) prepayment is contributed in the size of not less than 15% of the selling price of the sales item no later than ten working days from the date of signing of the sale-and-purchase contract. Prepayment is the guarantee of proper performance of obligations by the buyer under the sale-and-purchase contract. Guarantee fee is counted towards due prepayment;

    2) remaining amount is contributed by agreement between the parties but no later than thirty calendar days from the date of signing the sale-and-purchase contract.

    All payments between the seller and buyer are carried out by bank transfer via current account of the seller specified in the sale-and-purchase contract.

    In case of delay of final payment it is available to terminate sale-and-purchase contract under unilateral arrangements. In case of termination of sale-and-purchase contract due to delay of final payment, prepayment will not be refunded.

    Note: source of information "Schedule of electronic trading for property sale on the web-portal of register of public property".

  • 16. Will «KazakhExport» EIC» JSC (Export Credit Insurance Corporation “KazExportGarant” JSC) preserve the status of export development institute after privatization?

    Core functions and the status of «KazakhExport» EIC» JSC as an export development institute will be preserved in full.

  • 17. Will the terms of product provision of «KazakhExport» EIC» JSC (Export Credit Insurance Corporation “KazExportGarant” JSC) change after privatization, in particular, will tariffs raise?

    Product conditions of «KazakhExport» EIC» JSC may be changed with the purpose of efficiency increase in supporting exporters, at the same time program availability for exporters will be preserved.

  • 18.Will selection criteria of customers wishing to use services of «KazakhExport» EIC» JSC (Export Credit Insurance Corporation “KazExportGarant” JSC) change after privatization?

    Privatization of «KazakhExport» EIC» JSC is focused primarily on increasing financial health with the purpose of increasing support of exporters, so the change of selection criteria of customers may be related to efficiency increase of support mechanisms of exporters in accordance with global trends, market situation, requirements of national legislation and regulatory body.

  • 19. Will preferential crediting rate of "House Construction Savings Bank of Kazakhstan" JSC disappear, if there is an investor?

    All current preferential conditions of interest rates for credits will be preserved in full. Regardless of the form of ownership Bank will continue its operations in the framework of the Law "On housing construction savings in the Republic of Kazakhstan". According to Article 3 subitem 5 of the current law, size of fee rate on housing loan may not be higher than size of fee rate on deposit in housing construction savings by more than three percent per annum.

  • 20. Will "House Construction Savings Bank of Kazakhstan" JSC leave the state housing programs due to privatization?

    In no event. "House Construction Savings Bank of Kazakhstan" JSC is the main operator of new housing program of the state "Nurly zher". The given State program combines all housing initiatives of the state and initial stage of its realization will extend from 2017 till 2021.

  • 21. If a new investor comes, will they cancel payment of the state award for depositors of "House Construction Savings Bank of Kazakhstan" JSC?

    They will not. As payment of the state award in the size of 20% of the annual savings on deposits of people is governed by the Law "On housing construction savings in the Republic of Kazakhstan". All payments on the award are performed at the expense of the state budget.