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TT shares sales/buyback process begins

According to Government of Mongolia on April 11,2012 (http://open-government.mn/read-1390-.html) , regular Cabinet Meeting issued a resolution regarding transfer of shares of Erdenes Tavantolgoi company to citizens and selling those to enterprises.

 

The work of transfer of up to 20% of shares to citizens will be organized in following manner

  • Within framework of Government’s 98th resolution of 2011 to add 536 shares to citizens who already own the shares , to transfer 1072 shares to citizens newly born before validity of the resolution on March 31,2011 and certain clauses of the resolution

To deduct and account shares allocated as bounty and a shares from following citizens

  1. i.Senior and developmentally challenged citizens who produced request to receive cash up to 1 million MNT from Human Development Fund according to 53rd resolution of the Parliament
  2. ii.Student to received bounty and a share in form of tuition payment for academic years 2010-2011/2011-2012
  3. iii.Citizens who received bounty and a share in form of health insurance payments in 2011
  • State Property Committee, General Agency of Taxation and General Agency of State Registration each have been assigned to organize selling of up to 10 per cent of shares of Erdenes Tavantolgoi company to enterprises named in Parliament’s 39th resolution of 2012 at nominal price in equal amount.
  • Minister of Social Protection and Labour T.Gandi, State Property Committee and Finance Minister D.Khayankhyarvaa each have been assigned to organize funding buyback of citizens’ shares who would like to sell back to Government at nominal price from revenues from sales of the shares to enterprises according to Parliament’s 57th resolution of 2011
  • State Property Committee has been assigned to organize abovementioned measures  before IPO of Erdenes Tavantolgoi on international capital market

Chief of Staff of the Government Ch.Khurelbaatar answered to questions of many citizens on how should they know if they have the shares

  • After approval of Human Development Fund, Human Development Fund Recordbook has been opened for every citizen. Duty has been assigned to record 536 shares in the Human Development Recordbook of every citizen and to Mongolian Stock Exchange and its affiliated registration centers to register those 536 shares to every citizen. Account for 536 shares have been opened for everyone. However, at moment they are not to be traded yet. At the specific time relevant decision regarding trading the shares will be issued. Citizens especially in remote areas should be wary of brokers and dealers opening accounts and charging 5000 MNT. In due time Government will make a decision and give direction to citizens.
According to Government of Mongolia on April 11,2012