Interview of N.Altankhuyag, First Deputy Prime Minister
Q: The IPOs for the Erdenes Tavan Tolgoi LLC were chosen and there are some rumours about the International banks and what is your opinion as a Head of the working group from the Government?
N.Altankhuyag: It is wrong to think that the working group should know all the matter of the Tavan Tolgoi. The IPOs were selected by the National Committee and Erdenes MGL LLC. Ask them about the International banks. What is going on at the moment is that we have shortlisted 6 Groups from the 15 consortiums. From Friday this week, the Government’s working group, Erdenes Tavantolgoi and National committee will start to negotiate with the 6 shortlisted groups. The discussion will be very broad and now there are Groups from China, Japan, Korea, Russia and USA but only one will be chosen.
Q: The IPOs were selected so how will they set the equity price for the Erdenes Tavan Tolgoi?
N.Altankhuyag: The International banks were selected but that means they have the right to work and they will start that now. Equity price is very difficult term to understand. For example, the price can be 100 MNT at first but it can vary afterwards. If the trading is active the price will go up but if no one buys the shares the prices will fall. So for now the equity price is not set.
Q: About how much will it be? Because some politicians are saying that total 550 shares provided to the citizens will be equal to MNT 300 million?
N.Altankhuyag: That is now known at all, the only thing we know is that 550 shares will be distributed for each citizens. I think people are saying the prices will increase but that is now known also, if the prices of the equity increases then the value of 550 shares will increase. I think the equity prices will be set at 1 USD at least.