On May 29th of 2017 an announcement of another unplanned stockholders meeting appeared on AO Kazakommercbank’s website. From the body of this announcement it follows that on June 30th 2017 only one issue will be examined – an issue of voluntary ending of listing on the London stock exchange of depositary receipts, a base asset like regular stocks, issues by AO Kazkommercbank.
Reasons for why AO Kazkommercbank decided to delist are evident, but the press service of the bank, in its response to Tengrinews.kz, for some reason announced that “the issue, regarding possibility of delisting has been examined by the management and stockholders of KKB for some time already” and is related to low liquidity of GDR on LSE, as well as bank’s lack of plans to attract stockholder capital on the market.
Judging from the quotation of stocks of AO Kazakommercbank both on London as well as on Kazakh stock exchange, the market has negatively appraised intentions of the financial institution. Thus, on the issuer’s website the price of one stock on LSE on June 2nd was listed as 1.1 USD with the lowering against previous quote by 22.73% and 127 tenge on KASE, with a lowering of 2.91%. At the same time it looks like someone uses minimal volumes of trading to artificially support the rate of stocks of Kazkom, in order to not let it fall further.
As of January 1 2017, net asset value of one stock of AO Kazakommercbank was 466.65 tenge. May 15th 2017 extraordinary meeting of stockholders of the financial institution decided to increase the total number of announced regular stock almost by 22 times, from 1.1 to 24 billion, which will inevitably lead and already has led to the falling of market quotations. And, after it became known on June 2nd of 2017 that stockholders of AO Kazkommercbank Kenes Rakishev and FNB Samruk Kazyna will sell their stocks to the People’s bank of Kazakhstan only for 1 tenge a piece, this falling will get larger.
Thus, minority stockholders of AO Kazkommercbank are suffering losses, which likely will cause antagonism on their part and attempts to compensate those losses. Thus, delisting of AO Kazkommercbank from the London stock exchange is very necessary to both this financial institution and its future buyer in the name of People’s bank of Kazakhstan. Because by using English law and defending their interests in the British court, minority stockholders have more opportunities to stand their ground.
Also read: Disrobing” Rakishev, What Is Behind the Onslaught of Qazkom?, Who will gain from the merger of banks?, Which Banks Will the National Fund Save?, A Giant Alliance. Halyk and Qazkom in One Bank.
