Privatization of Most Valued Companies
The Most Valued Companies (MVCs) are government-owned enterprises that occupy a monopolistic share in substantial market, strategically positioned in their respective sectors of the economy and have the potential to attract foreign investment.
Increasing participation of foreign strategic investors in the privatization of the MVCs will support to modernize equipment and technology up to current international standards, introduce management know-how, dismantle the monopolistic position of certain enterprises, and promote the economic aspects of Mongolia’s multilateral foreign policy and national security. However, since these companies are monopolistic and may remain monopolistic after their privatization, special considerations and arrangements are required in order to make their operations efficient. Possible adverse effects on the national economy should also be considered.
The companies selected for privatization in 2005 are currently being audited or are subject to audit by a reputable international auditor. An information Memorandum consisting of legal and financial due diligence will be prepared for each company under the privatization program of most valuable companies.