Kalistani Major History

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Initial Capitalization of KALNAPECO and KALNAFERCO published in Kalistan
Suggests Nationalization with Compensation
Kaliburg, Ananto
April 20, 4407

Details of an initial valuation of Nationalization have been leaked to the Press.  In a response to a request for information from the Government of the Kingdom of Vanuku, the Finance and Trade Minister put initial valuation of KALNAPECO at 45 billion KRB (1.35 Billion LOD), and KALNAFERCO at 35 Billion KRB (1.05 Billion LOD).  The Trade Ministry confirmed these numbers today and issued a statement:

"It is our intention to not greatly upset the national economy by nationalizing without compensation.  Since nationalization ended, and the properties of the people were sold off, Kalistani capitalists have dramatically cut back production in both major sectors.  However, they continued to modernize and update these operations over the whole time, to increase productivity.  What we will use the initial capitalization for is to purchase these properties, at a discount, from their current owners.  We consider the 80% valuation we have made on the formerly nationalized properties to be an exceptional return on investment, considering that the development of these industries was fully funded by the State, and private interests were sold them at firesale prices in the Government's rush to return them to the private sector.  An 80% valuation is more than generous to the current owners and investors, and the Republic would be happy to offer former investors new stock in the Nationalized Industries in lieu of a cash payout.  However, stock trades will be significantly discounted, at 3 for 1.  When the Nationalization Bills pass, we will have a more updated number which will take other factors, such as unrecoverable depreciation, into account."

Speculation on the Stock Price of the National Companies has already begun in the Nation's capital.  With 51% already guaranteed to the Republican Government in the Charter, and an expected release of close to 20 billion publicly tradeable shares, speculative prices currently put one share of KPO at 1.1 KBR and one share of KFO at .86 KBR a share.  The Trade Minister hinted that these prices might go up as much as 5 cents per share before the Companies are fully nationalized.