Due to the publications by a number of mass media of information on the planned placement of the shares of JSC NC "KazMunayGas" (KMG) on foreign stock exchanges and the Kazakhstan Stock Exchange that have become more frequent, KMG deems it necessary to inform you as follows:
Consistent with Resolution No. 1027 of 8 September 2011 of the Government of the Republic of Kazakhstan 'On Approval of the Program for Bringing Shareholdings in Subsidiary and Dependent Entities of “Sovereign Wealth Fund “Samruk-Kazyna" Joint Stock Company to Securities Market' (the Resolution), KMG has been included to the III echelon of companies – the companies whose shares may be placed on the securities market after 2015. The target indicative portion of share placement within the framework of of the 'People's IPO' Program is from 5% to 15% of the total number of voting shares.
It is understood that the precise number of shares will be recommended by the Board of Directors of the Sovereign Wealth Fund "Samruk-Kazyna" (the Fund) as reasonably advised by the company during preparation for the IPO, and will be approved by the Government of the Republic of Kazakhstan in accordance with the procedure established by the laws.
Meanwhile, as of today, neither the Government of the Republic of Kazakhstan, nor KMG's authorized bodies have made any decision on placement of KMG's shares on securities markets (stock exchanges). Accordingly, it is premature to talk about possible placement of KMG's shares on stock exchanges, along with determining KMG's consultants on this matter.
Besides, we note that currently KMG does not consider the matter of buying back 37% of the shares/global depository receipts of its subsidiary KazMunaiGas Exploration Production JSC, placed on the Kazakhstan Stock Exchange and London Stock Exchange.
In case of making a decision in accordance with established procedure on placement of KMG's shares or other securities on stock exchanges, KMG will take measures to cover relevant actions in the mass media.
JSC National Company KazMunaiGas is a Kazakhstani national operator for exploration, production, refining and transportation of hydrocarbons . 100 percent of the shares of JSC NC KazMunaiGas belong to JSC National Welfare Fund Samruk –Kazyna.