How Timur Kulibayev Got Rich

The year 2017 was rather successful for Chairman of the Presidium of the Atameken National Chamber of Entrepreneurs Timur Kulibayev and his wife Dinara. According to the new Forbes billionaires rating, their joint fortune has grown from $4.2 bln to $6.4 bln, in other words, by $2.2 bln or one-and-a-half times.

Thus, as of today, Nursultan Nazarbayev’s second daughter and his son-in-law each posses a fortune amounting to $3.3 bln and, in that regard, occupy the 729th place in the world.

We have no knowledge as to how the Forbes magazine calculated Dinara’s and Timur’s fortune, but, in the rating, they are presented as the people of the banking profession while Halyk Bank whose majority share belongs to them on a parity basis, named as their most significant asset.

It is true, during last year, Halyk Bank did not only become the country’s super-systemic financial institute but also seriously grew in its price. As of March 7, 2018, according to the Kazakhstan Stock Exchange data, the market value of the bank’s shares amounted to 1216 bln tenge or $3.8 bln.

Note that, initially, the market reacted negatively to the announcements of the upcoming deal to purchase Kazkommertsbank. To prove it, we will quote one of the publications on the subject. “According to the news analysis of the London Stock Exchange, after the financial institute called the announcements on the deal of November 18, 2016, “speculative”, the share price dropped by 3.29%. On January 20, 2017, Halyk Bank announced the preliminary talks with Kazkommertsbank and its majority shareholder on the potential deal. After that, the share price dropped by 13.31%. As of 17.01, Astana time, the Halyk Bank share price at the London Stock Exchange amounted to $6.42. At the same time, at the Kazakhstan Stock Exchange where the shares were also listed, their price constituted 51.01 tenge as of March 1”.

On March 7, 2018, the Halyk Bank shares traded at the KASE at 100 tenge per share which is two times higher than on March 1, 2017. This is how the market reacted to the generous gift from Akorda that, first, inflated Kazkommertsbank with 2.4 trillion tenge of the state money and, then, gave it away for only two tenge.

By our rough estimate, it is exactly thanks to this gift that Halyk Bank shareholders grew richer by $1.9 bln three quarters of which (about $1.4 bln) fell to the share of Dinara and Timur Kulibayevs. Therefore, the rescue of Kazkommertsbank resulted in their growing richer by exactly this sum.

In conclusion, let us note that one can compare these numbers with the amount of the state expenditures on the Five Social Initiatives of the President we estimated. The program was announced by Nursultan Nazarbayev on March 5, 2018. You will be quite impressed by the result of this comparison.


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