Today on the platform of the Fund “Samruk-Kazyna” a press briefing dedicated to the privatisation of JSC “QAZAQ AIR” was held.
Transfer to the competitive environment of JSC “QAZAQ AIR” is carried out in the current year within the framework of execution of the Programme on privatisation for 2021-2025, approved by the resolution of the Government of the Republic of Kazakhstan.
As the Managing Director on development and privatisation of JSC “Samruk-Kazyna” Saltanat Satzhan told at the briefing that the Fund strives for maximum transparency of processes on privatisation of assets of the group. Privatisation is aimed at attracting investment and resources to transform QAZAQ AIR JSC into a leading regional air carrier.
An open two-stage tender allows the selection of an investor that meets the established qualification requirements.
At the first stage, potential investors study the airline and confirm that the interested parties meet the qualification requirements and agree to the established investment obligations of the transaction.
The main objective of the first stage is to identify a range of investors who meet the qualification requirements and are able to ensure further development of the airline.
At the second stage of the tender, bidding is conducted between the bidders who have passed the qualification selection based on the results of the first stage. The tender sets a minimum price for the asset, but the purchase price will be determined based on the results of the bidding.
The briefing outlined key requirements for potential investors, including:
– Positive investor experience in civil aviation;
– Demonstration of financial stability and solvency;
– Compliance with the Fund’s anti-sanctions requirements;
– Compliance with the legal requirement for “nationality” of airlines
The main investment obligations to be fulfilled by the buyer after the acquisition of the airline are also presented:
– Fulfilment of the strategic development plan, including a plan for fleet development in the medium term, submitted as part of the tender.
– Maintaining 2/3 of full-time staffing levels;
– Ensuring continuous certification on industrial safety IOSA.
Chairman of the Board of JSC “QAZAQ AIR” Erkin Nauryzbaev noted that one of the aspects of consideration of the winner of the competition is its strategic plan for the development of JSC “QAZAQ AIR” after privatisation, including its plan to expand the fleet and geography of the route network, which in general will have a positive impact on the growth of competition and development of air travel in KazakhstanThe exhaustive list of requirements and obligations is presented in the tender documentation, which is publicly available and posted on the websites of the Fund sk.kz and ipo.sk.kz, as well as on the website of the airline flyqazaq.com.
According to the notice, the initial/minimum price for 100% of shares of JSC “QAZAQ AIR” is 10.2 billion tenge. At the same time, the parameters of the transaction assume that the investor also undertakes to ensure repayment of QAZAQ AIR’s debt to the Fund, which is about 38 billion tenge.
According to the Head of the airline, today QAZAQ AIR JSC is the third independent airline in Kazakhstan with its own operator’s certificate and other relevant licences successfully developing in the domestic market. The company has 5 aircraft De Havilland Dash-8-Q400NG, modern turboprop aircraft of Canadian manufacture.