JSC conducts online broadcast of electronic auctions under privatization program
JSC organized an online broadcast of electronic auctions for media representatives. The auctions of seven assets of NC «Kazakhstan Temir Zholy» JSC conducted according to English method were presented as an example.
«Electronic auction is the simplest and most transparent system because human factor is minimized here and it is equally open for all citizens, individuals and legal entities”, Director of Assets Privatization and Restructuring Department of “Samruk-Kazyna” JSC Dauren Tasmagambetov said.
In total, it is planned to privatize 216 assets within the Fund’s group of companies and they are grouped under two lists. The first companies which are in the process of divestment are from the second list. They are 172 companies which will mainly be divested by electronic auction. As part of the Complex privatization plan for 2016-2020, 39 assets worth about 7.4 billion tenge are to be sold.
The electronic auction is an auction in which the winning buyer is the participant who offers the highest bid for the assets sold. In accordance with the rules on electronic auctions in the Republic of Kazakhstan, a company or its assets can be put up for auctions for three times – the first time by English method, the second and the third time as per Dutch method. If the asset is not sold even after three auctions, the state commission for the privatization of the Republic of Kazakhstan decides on its restructuring.
To take part in the auction, the potential investor must register on the portal gosreestr.kz, submit an application for participation in the auction, and then pay the guarantee deposit. On the appointed date and time, an electronic auction is declared open if, at least, two participants have registered in the auction room at the start of bidding.
«Our system is transparent and open, and we have not received till date any complaints from any participants about the trading on our website”, Chairman, Zhanasyl Ospanov, from Management Board of «Information Record Center» JSC said. In order to reduce the risks and to maintain transparency, information regarding guarantee deposits is closed in our system. Applications for participation in the auction end two hours before the start of the trading. According to data available with us, many participants are applying just before the end of the time for submission of application. Therefore, until the last moment, we do not know whether the auction will take place because access to view applications is limited before the start of the actual trading.»
On October 19, electronic auctions were conducted for following seven companies of KTZ: «Bas-Balkhash 2004» LLP, «MAK-Ekibastuz» LLP, “Center of Transport Services” JSC, «Rauan Burabay» LLP, “Magistral – Kyzmeti” LLP, «KazElektroPrivod» LLP, and “Regional Forward Logistics”. After obtaining the results of electronic auctions from this first round, the commission on the sale of assets of «NC» Kazakhstan Temir Zholy» JSC is planning to re-auction these companies by organising second and third round. In accordance with the legislation, the second electronic auction will be conducted by the Dutch method.
Electronic auction is conducted three times; and each subsequent auction is open after twenty business days.