The authorities in Kazakhstan have decided to privatize 60 state-owned companies, including the oil & gas company KazMunaiGas, the owner of KMG International, Romania’s former Rompetrol Group. The country has been hit by the financial crisis due to falling oil prices.

The privatization process will not take place immediately, but will be preceded by a “corporate restructuring” period which could last up to four years, said  Umirzak Shukeyev, CEO of the Kazakh sovereign investment fund Samruk-Kazyna National Welfare Fund, reports Profit.ro.

After this period, the state will list 60 of the most important companies in the country, including KMG, on the Astana stock exchange, as well as on the Hong Kong and London bourses. Foreign investors will be able to acquire stakes of minimum 25% in the companies.

According to Financial Times, the Kazakh authorities will have difficulties finding buyers for giants such as KazMunaiGas, which have "burdensome social obligations".

KMG will soon have a new owner, namely the Central Bank of Kazakhstan. Samruk-Kazyna National Welfare Fund, which is the company’s sole owner, will sell the Central Bank a 10% stake in KMG, at a price that can’t be less than USD 4 billion.

KazMunayGaz bought The Rompetrol Group in 2007 from Romanian entrepreneur Dinu Patriciu.

editor@romania-insider.com