SPC CHIEF HINTS AT TAVAN TOLGOI SHARES BEFORE NAADAM

State Property Committee (SPC) Chief D.Sugar has held out the hope that people’s free shares in Erdenes Tavan Tolgoi LLC would be distributed before Naadam this July. Two things have to be done before that. First, the total value of the company’s asset, the Tavan Tolgoi deposit, has to be determined in a way that the estimate would command international respect, encouraging foreign investment.  Once the worth of the deposit is estimated, that would be divided into 15 billion shares so that the unit price could be fixed.
The SPC hopes to finish by March all preparatory work relating to both distribution of free shares to citizens and sale of shares at predetermined prices to economic entities.  These will be common shares, as decided by Parliament. There will be an initial lock-in period when citizens will not be permitted to sell, but they would be free to buy more shares at the Mongolian Stock Exchange. All economic entities in a list are expected to be offered 30,000 shares each. They will be able to trade these at market rates.
Raising between USD2 billion and USD4 billion from the world market could well be too much for one investment bank, and Mr. Sugar felt it was likely that three or four banks would be chosen. They would also be the ones to estimate the value of the company.
Source: English.News.mn
The Business Council of Mongolia aims to advocate increased trade and investment in Mongolia and serve as a forum for dialogue on the important business climate issues. Join us at the Business Council Mongolia Official Website
No votes yet
Archived Comments