We are forwarding the attached Open Letter with Mongolian translation (non-official) from Mr. Bill Gorman who has completed his assignment at the MSE for the London Stock Exchange.

BCM strongly supports the passing of the draft Securities Law in this session of Parliament.  The MSE's development urgently requires this legislation on a timely basis.

Source: The Mergermarket group

Dealmakers in Mongolia will find many companies looking for funding but they will face hurdles such inadequate understanding of valuation metrics and overly optimistic growth projections, industry practitioners said. As acquisition activity heats up, structuring deals using earn outs and other performance payments can help bridge the wide gaps between how buyers and seller value a business, panelists said at Mongolia: New Frontiers in M&A and Private Equity,” a Mergermarket Forum held in Ulaanbaatar on November 8.

“One of the biggest challenges we're facing is the seller mentality and educating the seller on the very basics of corporate finance and M&A transactions,” said B. Bold a former JPMorgan banker who chairs the country's stock exchange.

“There is no lack of deals in Mongolia, as many businesses are looking for cash,” said Mongolia Opportunities Partners Managing Director Mandar Jayawant. However, there is “very little precedent” in Mongolia on how to structure deals, what role a private equity investor plays in a business and how businesses are valued, he said.  In addition some business owners have “quite unrealistic expectation of valuation,” Jayawant said.

Source: BCM NewsWire issue 192

The BCM Membership Renewal Dinner on October 31 at the “Oasis” Restaurant in Kempinski Hotel Khan Palace was the 2^nd annual dinner for all members.  BCM celebrated its highly successful 4th year at the dinner attended by 170 people.    
Mr. Laurenz Melchers made the opening remarks which were followed the first of two sets by the “UB Trio” Jazz Band featuring T.Purevsukh, one of the Mongolia’s famous talented pianists. 
Ms. Ts.Enkhchimeg, Arts Council of Mongolia, made a presentation entitled “Staying local, acting global” which concluded with an uplifting Mongolian traditional dance performance. 
The BCM Award Ceremony was then held with presentation of the following awards:
- Energy Resources LLC – Local Company of the Year
- Newcom Group – Local Company of the Year
- Hunnu Coal – International Company of the Year
- B-TV – Media Company of the Year
- Mr. D.Odsuren, Head of the Standing Committee’s Office, Secretariat of the Parliament – Government “Friend” of the Year
- Economic Policy And Competitiveness Research Center – Research Institution of the Year
- Environmental Working Group chaired by Mrs. Meloney Lindberg – BCM Working Group of the Year. 

The Membership Renewal Dinner photos are posted on BCM’s website’s Photo Gallery. Click here to access. 
BCM urged its members who haven’t renewed yet to renew by November 30 to take advantage of the Eznis special offer - 5% off on scheduled Eznis Airways flights until March 24, 2012.