FC Kairat on sale
According to the information published on the website of the Electronic Trading Platform, the administration is selling its stake by an ascending-price auction, i.e. only the highest bidder can take the lot. The starting price is KZT 2.03 billion (over $6 million).
"The government stake of 30 percent in FC Kairat will go under the hammer in the furtherance of the privatization program. The football club has been included into the list of the assets to be sold in 2017," a representative of the Almaty Finance Department confirmed to the Kazinform correspondent.
In fact, 70pct of the club's share belongs to a private company, Globex Energy FZE. However, they have not bought out the remaining stake from the city administration.
"In accordance with the Law on Limited Liability Partnerships, the majority shareholder does not have a pre-emption right to purchase the remaining government stake in the privatization process. Nevertheless, it is entitled to participate in the auction on an equal footing with others," the Almaty Finance Department said.
According to the club financial statement published on the Electronic Trading Platform website, the club's revenues and expenses as of July 20 amounted to KZT 2.3 billion and KZT 4.4 billion respectively. The net loss since January this year has exceeded KZT 2.1 billion.