Hot news:
Kazakhstan’s revenues for grain exports in 2013 exceed $1 billion 60% of Kazakhstanis support Russia on Ukrainian crisis Kazakhstan to launch its first ever remote sensing satellite from Kourou April 29 Repatriated Kazakhs to get Kazakhstan citizenship in 1 year Kazakh father of Boston prisoner granted US Visa Philippines' oldest artworks in danger of disappearing 60% of China underground water polluted Village turns into island in Kazakh steppe Kazakhstan is very concerned over Ukraine: Tokayev Kazakhstani writer Ilya Odegov wins Russian Award UK woman held for murder after children's bodies found Russia expels Canadian diplomat Judge's order on CIA secret prisons released in full UK revokes Ablyazov's refugee status US sending 600 troops to Poland, Baltics for drills Pentagon scientists show off life-size robot Brazil ex-leader Kubitschek was not murdered Fifty years of Mustang cool: is China along for the ride? Australia boosts air power with $11.6bn purchase of 58 F-35s Small French park becomes home for desperate Syrian families Balkhash lake named best place for nuclear power plant in Kazakhstan Pirates kidnap three on Singapore tanker off Malaysia Vienna's Versailles offers imperial hideaway Oscar show producers to return in 2015 Sri Lanka detains British tourist over Buddha tattoo GSK, Novartis unveil major healthcare revamp Death toll in South Korea ferry disaster crosses 100 Teen survives five-hour flight in airplane wheel well British corruption of minors case hearing in Uralsk postponed for one month Boston prisoners' legal proceedings may be postponed: Stall Full-scaled resumption of crude production at Kashagan expected at the end of 2015 Military parade due on May 7 in Astana Brunei delays introduction of tough Islamic law Kazakhstan movie in Cannes Festival programme Hitler, Kazakhstan and editorial struggle Passenger train derailed in Kazakhstan's west, 44 injured Biden meets Ukraine leaders as Russia, US swap blame on crumbling deal China's Shandong Airlines orders 50 Boeing planes for $4.6 bn South Korea says North may be close to nuclear test Kazakh chess princess Zhansaya Abdumalik takes 3rd place at Asia Continental Almaty Marathon raises $55 thousand for charity Juicy court case leaves Coca-Cola on defensive Formula One boss faces bribery charges in German trial Police arrest 250, seize weapons in Argentina Gladiators, horsemen help fete Rome's 2,767th birthday Powdered alcohol poised to hit US stores UN evacuates 100 Muslims from C. Africa capital Canadians rally to legalize marijuana Step aboard Orient Express for journey back in time Guides, climbers cancel Everest expeditions after tragedy Queen Elizabeth portrait released to mark 88th birthday President says ferry crew's actions 'tantamount to murder' Most Bangladesh factory survivors still too sick to work Tennis: Kazakhstani Zarina Diyas gets in WTA Top-100 Facebook wants to beam the Internet from the sky Canadian woman's letter arrives -- after 45-year delay Peru probes killing of endangered penguins Brazil passes trailblazing Internet privacy law

Halyk Bank may give up on BTA deal

Friday, 21.06.2013, 11:42
Comments (0)
Halyk Bank may give up on BTA deal
Halyk Bank of Kazakhstan. ©Yaroslav Radlovskiy
The deal to purchase BTA by Halyk Bank may take longer than planned, Tengrinews.kz reports.

One shouldn’t rule out the possibility of Halyk Bank giving up on the idea of purchasing BTA in case the country’s Government [that owns BTA through Samruk Kazyna Sovereign Wealth Fund] doesn’t offer concessions in terms of price, Tengrinews.kz reports, citing Artyom Ustimenko, analyst with the Agency for ROI Studies as saying.

Earlier tengrinews.kz reported, citing Halyk Bank Chairman of the Board Alexander Pavlov, that purchase of BTA by Halyk Bank and sales of Halyk Bank’s pension fund [to the Government] should be separate deals. Both deals should be closed without any pressure, at a fair price. In any case, these should be monetary deals, rather than a barter deal”.

“BTA remains a high-risk asset. It should be sold at a significant discount. With an attractive ask price, Halyk Bank hopes to get full control over BTA, rather than a minority stake. With no other interested buyers in place, Halyk Bank is the only potential buyer acceptable for the Government”, Mr. Ustimenko believes.

“As far as sales of the Halyk Bank’s pension fund sales are concerned, Halyk Bank doesn’t think it could be exchanged for the Government’s stake in BTA (…) sales of the pension fund that is effective and profit-making is more expedient for Halyk Bank from the financial perspective”, he said.

According to Anton Soroko, analyst with Russia’s Finam Consultancy, Halyk Bank wants two separate deals to secure the maximum possible discount when buying BTA: in case of exchange it would be much harder to secure.

“Halyk Bank’s pension fund is holding strong positions, possesses imposing assets (…) BTA calls for substantial investments on the part of any potential buyer; this circumstances complicates valuation of BTA (…) there is a high probability Halyk Bank will succeed in making sure these deals are separate”, according to Mr. Soroko.

Olzhas Khudaibergenov, Director for Center of Macroeconomic Studies, believes that Halyk Bank’s pension fund could be valued higher than the Government’s stake in BTA. “However, if the planned audit shows that the assets of the two entities are equal in terms of price, the much-talked-about exchange will be more probable; even if the pension fund is valued higher, the decision will depend on the Government’s willingness to pay the difference. Now the Government is trying to exchange its stake in BTA for the Halyk Bank’s pension fund, saying the assets are of equal worth”.

Back in February 2013 President Nazarbayev commissioned the Government to make sure Samruk-Kazyna Sovereign Wealth Fund exits the earlier bailed-out BTA, Alliance and Temir banks before the end of the year.

Samruk-Kazyna made Halyk Bank an offer to purchase BTA March 27, 2013.

Following the Government’s bail out, BTA defaulted on $12bn of debt and agreed a restructuring that saw foreign creditors take a $7bn haircut. A second restructuring for another $11bn was concluded late last year.
Views: 241    Comments: 0
preloader
Add a comment
preloader

2014
2008
2009
2010
2011
2012
2013
2014
April
January
February
March
April
May
June
July
August
September
October
November
December

News
Archive

Mo Tu We Th Fr Sa Su
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30

Feature stories