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    KZTC   KZ000A1CTGM4

KAZTRANSCOM JSC

(KZTC)
  Report
End-of-day quote. End-of-day quote Kazakhstan Stock Exchange - 03/10
8200 KZT   +65.66%
05/07Kazakh investors challenge rules on squeezing out minority shareholders
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Kazakh investors challenge rules on squeezing out minority shareholders

05/07/2021 | 09:30am EDT

ALMATY (Reuters) - A group of retail investors has mounted a legal challenge to Kazakhstan's rules on squeezing out minority shareholders in a case that could set a precedent for the oil-rich nation's equities market.

The investor filed a lawsuit in a local court at the end of April against local financial company Jysan Ventures after it took over telecommunications firm KazTransCom and forced out minority shareholders.

Jysan Ventures has dismissed allegations of unfair practices as "unfounded" and said it abided by the law and bourse rules.

The investors allege the company used vague squeeze-out rules to force them to sell at artificially low prices. The fair price was at least 39% higher, they say, seeking compensation.

Bakht Niyazov, a private equity and venture investor, is among the plaintiffs.

He won a protracted legal battle against another local telecom firm, Kazakhtelecom, in 2019.

Niyazov said his campaign for minority rights was in part driven by concerns about his own business.

"The worse the situation is with investor protection in Kazakhstan, the harder it will be to develop our main projects linked to growing young companies," he told Reuters.

At the same time, the Qazaq Association of Minority Shareholders (QAMS), a lobbying group set up by activist investors, is pushing through legislative reform that would clarify squeeze-out rules and ensure minority investors get the same price as those selling majority stakes.

QAMS head Daniyar Temirbayev told Reuters the group has managed to get the authorities' attention by moves such as challenging the flattering assessment of Kazakh corporate governance regulations in the World Bank's annual Doing Business report - which Kazakhstan has long used as a benchmark.

The oil-rich former Soviet republic's equities market remains underdeveloped with very few liquid stocks and no meaningful foreign investment in local securities except for those listed abroad.

Offering hope of greater diversity, President Kassym-Jomart Tokayev ordered the government this year to resume the so-called "people's IPOs" where shares in privatised blue chips are offered exclusively to retail investors.

(Reporting by Olzhas Auyezov; editing by Jason Neely)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
KAZAKHTELECOM JSC 1.98% 30401 End-of-day quote.13.86%
KAZTRANSCOM JSC 65.66% 8200 End-of-day quote.-63.56%
LONDON BRENT OIL -0.29% 75.32 Delayed Quote.45.84%
WTI -0.34% 73.011 Delayed Quote.51.83%
All news about KAZTRANSCOM JSC
05/07Kazakh investors challenge rules on squeezing out minority shareholders
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Financials
Sales 2019 16 196 M 37,9 M 37,9 M
Net income 2019 990 M 2,32 M 2,32 M
Net cash 2019 3 413 M 7,98 M 7,98 M
P/E ratio 2019 55,4x
Yield 2019 -
Capitalization 19 996 M 46,7 M 46,8 M
EV / Sales 2018 5,98x
EV / Sales 2019 3,18x
Nbr of Employees -
Free-Float 5,52%
Chart KAZTRANSCOM JSC
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KazTransCom JSC Technical Analysis Chart | MarketScreener
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Income Statement Evolution
Managers and Directors
Sergey Aleksandrovich Nazarenko Chairman-Management Board
Larisa Nikolayevna Tabakayeva Chief Financial Officer
Yerlan Bakhitovich Orynbayev Chairman
A. Almambetov Independent Director
A. Kenzhebayev Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
KAZTRANSCOM JSC-63.56%47
VERIZON COMMUNICATIONS-4.56%232 134
CHARTER COMMUNICATIONS, INC.7.56%134 244
CHINA MOBILE LIMITED9.28%127 393
DEUTSCHE TELEKOM AG19.51%101 127
NIPPON TELEGRAPH AND TELEPHONE CORPORATION9.20%94 390