Erdenes Tavan Tolgoi JSC shares to be returned

Apr 29 • Economy, Energy, Mining, News, State Affairs • 1275 Views • No Comments on Erdenes Tavan Tolgoi JSC shares to be returned

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In accordance with the government Resolution 132 of 2013, Mongolian government is to organize a one-time return-offer of Erdenes Tavan Tolgoi JSC shares for those companies who wish to return their shares.

Last year, 20% of the of the state-owned company’s shares were distributed to the public, and the government offered a compensation if a shereholder wants to re-sell it for cash. The government sold these re-sold shares to the companies for its face-value and was planning to act as a broker between the people and the companies. About 1.5 million people subscribed to sell their shares. About 1000 companies bought 36,240 shares each for 933 MNT each, accumulating 20 billion MNT in The Mongolian Securities Clearing House and Central Depository (MSCH&CD).

The government’s plan to payback 1.5 trillion MNT to the 1.5 million shareholders wasn’t realized. Hence, the companies that paid several thousand dollars for the shares also wanted to return it as the IPO had been delayed for number of times. Thus, the Tax Authority of Mongolia will organize a one-time return offer for those companies who are returning their shares.

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