Privatization of six state-owned companies under way

27.11.2009 16:21
Privatization of six state-owned companies under way

YEREVAN, November 27. /ARKA/. Six Armenian state enterprises are being prepared for sale through NASDAQ OMX Armenia Stock Exchange’s auction.

Armen Melikyan, director general of the stock exchange, said in an interview with ARKA News Agency that the privatization of these enterprises is running in due course and has already reached the stage of reorganization and registration at the Central Depository of Armenia.

On September 23, Armenian government gave its first permission for privatization of six companies by selling them through the stock exchange’s auction.

The urban planning institute, Atomservice and Nedrolog companies, Yerevan’s section of water supply as well as Kaputak and Narek resthomes in Sevan and Gyumri will be put on auction.

Evaluation of these companies are under way, Melikyan said.

After evaluation, the government will announce a tender for selecting broker company.

The director general of NASDAQ OMX Armenia said that the stock exchange would join the process at the moment of announcement of the tender.

“The sooner the process starts, the better. Each of the companies subject to privatization is attractive, and everything will depend on how it is introduced to the market and at what price it is offered,” Melikyan said adding that the mechanism of privatization through the stock exchange is more important than how much the companies cost, since this very mechanisms ensures transparency and secure investors’ rights.

These state-owned companies are planned to be put on auctions in spring 2010.

They have been selected from 80 companies after discussions with the stock exchange.

All the selected companies are functional and profitable, and all of them ended 2008 with net profit.

Some 500 companies with state participation are functioning in Armenia now.

Of them, 100 operates with 50-percent and higher state participation.

The government has set a six-month term for the privatization. -0--

Tags: , ,

Partners news

Related Posts