The Government of the Republic of Kazakhstan RESOLVES:
The following amendments and additions shall be made to Resolution No. 920 of the Government of the Republic of Kazakhstan dated August 9, 2011, "On Approval of the Rules for the Sale of Privatization Objects":
In the Rules for the Sale of Privatization Objects approved by the said resolution:
Clauses 1, 2, 3, and 4 shall be amended as follows:
"1. These Rules for the Sale of Privatization Objects (hereinafter referred to as the Rules) have been developed in accordance with paragraph 2 of Article 100 of the Law of the Republic of Kazakhstan "On State Property" (hereinafter referred to as the Law) and regulate the procedure for the sale of privatization objects through auctions and tenders, stock exchange trading, two-stage competitive bidding, and the sale of derivative securities certifying the right to shares in state-owned joint-stock companies, with the exception of cases of alienation of state property located outside the Republic of Kazakhstan and assigned to diplomatic service agencies abroad.
The following key concepts are used in these Rules:
1) Current Price – the price of the privatization asset determined during an upward price auction, or the announced price determined during a downward price auction;
2) Starting Price – the price of the privatization asset determined based on an appraisal report submitted by independent consultants or an appraiser, and set by the State Property Privatization Commission at the higher of the book value or appraised value;
3) Auction – a form of bidding in which participants submit their bids publicly, conducted electronically using the Registry's web portal;
4) Auction Room – a section of the Registry's web portal that enables the entry, storage, and processing of information necessary for the auction;
5) Auction number – a number assigned to a participant for participation in an auction or tender, provided they have an electronic digital signature issued by the national certification authority of the Republic of Kazakhstan;
6) Affiliate of a potential buyer (acquirer) – any individual or legal entity that has the right to determine decisions and/or influence decisions made by the potential buyer (acquirer), including by virtue of a transaction concluded in writing, as well as any individual or legal entity in relation to whom the potential buyer (acquirer) has such right;
7) Starting price – the price at which the bidding for each privatization object begins;
8) Two-stage tender – a form of tendering in which the winner is determined by the seller with the participation of independent consultants through stage-by-stage negotiations;
9) Minimum price – the price below which the privatization object cannot be sold;
10) Privatization object – an enterprise as a property complex; Production and non-production divisions and structural units of an enterprise as a property complex, the privatization of which does not disrupt the closed technological cycle; property of state-owned legal entities; shares of joint-stock companies; participation interests in the authorized capital of limited liability partnerships; derivative securities certifying rights to shares of joint-stock companies owned by the state;
11) Winner – the participant in an auction or tender who offered the highest price for the privatization asset; the participant in the second stage of a competition through two-stage procedures who offered the highest price and/or the best terms;
12) Security Deposit – a monetary sum transferred by the payer of the security deposit to the recipient of the security deposit to secure the fulfillment of an obligation to conclude a contract during an auction or the fulfillment of another obligation;
13) Participant – an individual or non-state legal entity duly registered to participate in an auction, tender, or competition through two-stage procedures;
14) Participant's Cash Balance (hereinafter referred to as the "e-wallet") - a potential participant's personal account in the register, used by the single operator to record funds deposited by the potential participant into the single operator's special transit account in a second-tier bank, related to:
Acceptance of security deposits for participation in auctions or tenders, with the exception of two-stage tenders;
Refund of security deposits, except for cases provided for in subparagraphs 1) and 2) of Part One of Clause 23 of these Rules;
15) Commission on Privatization of State-Property Objects (hereinafter referred to as the "Commission") - a collegial body established by the authorized body for state property management, the local executive body, or the Akim's office of a city of district significance, village, town, or rural district for the preparation and conduct of privatization auctions provided for by the Law and