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About the course of realization of the Complex plan of privatization of "KazAgro" Holding" JSC for 2016-2020


According to the Complex plan of privatization for 2016-2020, 17 dependent organizations and 3 subsidiary companies of the Holding are subject to transfer to competitive environment.

For subsidiary companies (Annex 3 to Complex plan):

1. The Holding implemented actions for approval of internal regulatory documents regulating the process of transfer of subsidiary joint stock companies (hereinafter – subsidiaries) of the Holding to competitive environment. In particular, the Rules of transfer to competitive environment of assets and organizations were developed, agreed with the Ministry of national economy and approved by the Board of directors of the Holding (decision of the Board of directors of the

2. By the decision of the Executive Board of the Holding Project office of "KazAgro" Holding" JSC was established and its Regulation was approved (decision of the Executive Board dated 4 May 2016 No. 22).

Project office includes representatives of the Holding and its subsidiaries, representatives of the Ministry of agriculture, Kazakhstan stock exchange and "Atameken" National Chamber of Entrepreneurs.

3. By the decision of the Board of directors of the Holding dated 7 September 2016 the list of subsidiary companies proposed for transfer to competitive environment was approved: "KazAgroFinance" JSC, "KazAgroProduct" JSC, "Kazagromarketing" JSC.

4. By the Decree of the Government of the Republic of Kazakhstan dated 21 November 2016 No. 719 "On introduction of changes and addition to the decree of the Government of RK dated 30 December 2016 No. 1141 "On some issues of privatization for 2016-2020" "Food corporation" NC" JSC was excluded from the Complex plan.

5.  The Holding conducted the procedures of purchasing of the services of Consultant to support the process of transfer of separate subsidiary joint stock companies of the Holding to competitive environment.

By the results of conducted purchases Deloitte company is determines as consultant. The Holding on 30 November 2016 signed the agreement for services rendering with "Deloitte TSF" Ltd.

6. To implement the official instruction given on the meeting of the Government of the Republic of Kazakhstan dated 10 October (clause 2.2 of the protocol 35) in the Holding the Road map was approved to transfer subsidiary companies to competitive environment (18 November).

After that the independent consultant will conduct pre-investment analysis of subsidiary companies and prepare recommendations, this Road map will be additionally expanded and detailed on specific actions and terms with account of recommendations of the members of Project office.

7. 4 meetings of Project office were held (2. 9 September, 25 November and 9 December of the current year). At the last meeting on 9 December the work schedule of independent consultant was agreed. Work schedule of consultant includes the following main actions: gathering of information, analysis of financial-economy activities of subsidiaries including analysis and research of existing practices, competitive environment; development of financial model, analysis and effects of privatization influence including to the industry, influence of privatization to credit rating, analysis of sale options; development of drafts of Road maps to increase the investment attractiveness.

At present, the company carries out pre-investment analysis of companies to development road map for its effective pre-sale preparation.

By the results of analysis it is expected that in March the Holding will make proposals for pre0sale preparation of separate companies to the State committee for economy modernization. The terms of companies put up for sale will depend on agreed actions for pre-sale preparation of companies.

For transfer to competitive environment of 17 affiliated companies of the Holding

For 17 affiliated companies provided by the Complex plan of privatization for 2016-2020, participation shares in 4 companies are already sold: "AgroExport" LTD, "AgroTradeExport" Ltd., "Makhambet" MLO and "Zhiger Yessil" MLO. Work on realization of other affiliated companies is commencing.

 Information about objects sale