Shares of 244 Belarus’ companies to go on sale in 2011-2013

According to the committee, the government bodies should carry out additional analysis of all joint stock companies to see if the government needs to keep its shares there. The analysis is to reveal economic entities that do not need state governance. Government shares of all loss-making joint stock companies can be put on sale. The shares of the companies where the state owns under 50% of shares and does not need to preserve the blocking stake will also be sold.

The relevant proposals were submitted to government bodies for consideration. The proposals will be taken into account during the elaboration of the privatization plan for 2011-2013. The list of companies which shares will be put on sale was made on the basis of suggestions of ministries and concerns. The list includes 244 joint stock companies.

The mechanism of the transfer of shares into trust management needs to be further elaborated. The list of joint stock companies which shares can be transferred into trust management should be compiled in Q1 2011. “We are going to work on it”, the committee said.

According to the committee, the results of privatization in 2008-2010 showed that the sale of government shares of joint stock companies was problematic. Slow sale of shares is attributed to the fact that the ministries and concerns proposed selling illiquid, non-attractive packages of shares of less than 25% of the authorized capital. The volumes of investments were not linked to the development programs of a joint stock company or the region.

Auctions of shares of five public companies involving investment agents were not successful either, the committee said. In 2010, investment agents with whom agreements were signed were involved in the privatization process for the first time. However, unfortunately the auctions never took place due to the lack of bids.

In 2009-2010 government shares and ten joint stock companies were sold at auctions to the amount of Br14 billion and $781 million. The biggest deal was the sale of shares of BeST for $500 million, BPS-Bank for $280.8 million. Shares of Smolevichi Experimental Mechanical Plant were sold to the tune of Br7.43 billion and those of Vitebsk regional mall “Garant” for Br2.76 billion.

As regards municipal property, the three-year plans for the sale of shares featured 254 open joint stock companies. Fifteen deals involving the sale of shares to the total amount of Br25 billion were closed in 2010. Brest Oblast made 23 translations, Gomel Oblast and the city of Minsk seven transactions each.

According to