Kazakhstan's Finance Ministry becomes KazMunayGas shareholder

ASTANA. Nov 10 (Interfax) - Kazakhstan's Finance Ministry has become a shareholder in KazMunayGas (KMG), the national oil and gas company.

The National Bank of Kazakhstan quoted Aliya Moldabekova, its deputy governor, as saying the regulator would in buy shares in KMG with a total investment amounting to 1.3 trillion tenge.

"According to the government's decision, the National Bank will buy shares in KazMunayGas, using 1.3 trillion tenge from the National Fund. 500 billion tenge worth of shares were purchased in October, and an additional 800 billion tenge worth of shares will be bought in November and December," Moldabekova said.

This purchase, funded by the National Fund, is part of the government's strategy, with the proceeds aimed to support the national budget.

KMG reported that after a 500 billion tenge transaction on October 31, the state fund Samruk-Kazyna's share in the oil and gas company dropped from 87.42% to 79.73%. Concurrently, Kazakhstan's Ministry of Finance increased its stake from 0% to 7.69%.

The purchase price per share was set at 10,653.65 tenge. At the same time, the closing price for KMG shares on the Kazakhstan Stock Exchange on October 31 was 11,396 tenge per share, and on October 30, it was even higher at 11,420 tenge. It shows that Samruk-Kazyna sold its shares below market value.

As of October 1, 2023, the state fund Samruk-Kazyna held 87.42%, the National Bank had 9.58% ownership of KMG's shares, and the free float was 3%.