Kazakhstan Kagazy PLC / Miscellaneous
11.12.2013 17:53
Dissemination of a Regulatory Announcement, transmitted by
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The issuer is solely responsible for the content of this announcement.
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FOR IMMEDIATE RELEASE
December 11, 2013
KAZAKHSTAN KAGAZY RAIDED BY FINANCIAL POLICE
Almaty, Kazakhstan - December 11, 2013 - London Stock Exchange listed
Kazakhstan Kagazy plc (the 'Company' or 'Kagazy'), Central Asia's largest
producer of paper, corrugated board and packaging, and a leading operator
of commercial warehousing and industrial infrastructure facilities in
Central Asia, today announced that its operations in Almaty had been raided
by the Kazakhstan financial police.
A spokesman for the company described events:
'Inspectors from the financial police arrived simultaneously at the
headquarters of our paper and logistics businesses, sealed the premises,
and announced that they will begin removing all documents and questioning
employees regarding non-specific claims of 'criminal activities and tax
evasion'. No details of the alleged offences have been provided.'
On November 20th the London High Court upheld a $100 million freezing
injunction over the assets of the Company's former shareholders, whom the
Company alleges fraudulently made huge disbursements of funds outside of
Kagazy's business. Since the injunction was upheld in London, the Kagazy
group has come under increased scrutiny from state authorities. However,
today's raid on the business shows a dramatic escalation in the level of
pressure being applied against the Company.
The Company's CEO, Tomas Mateos Werner, added: 'Since I became a
shareholder in the Company, all of its activities have been legitimate and
a culture of sound corporate governance has been established where,
previously, there had been none. We uncovered convincing evidence of
criminal actions by the Company's former shareholders, and used this to
take action against these individuals in London. The London High Court
agrees that we have shown a good arguable case of fraud by the former
shareholders. It is disappointing that the Kazakh authorities have
disregarded our evidence against the former shareholders, and are instead
pressurising a legitimate business on unsubstantiated grounds. We will take
all actions necessary to defend our business and our shareholders against
these actions.'
Kazakhstan, recently ranked 49th in the world in the World Bank's 'Ease of
Doing Business' survey, has announced its intention to join the WTO.
However, these developments show that substantial risks still remain for
foreign investors, as state authorities can clearly still be manipulated to
suit private interests of local businessmen.
***
Contact:
For further information, please visit www.kazakhstankagazy.com or contact:
Peter Roberts, Bell Pottinger, +44 207 861 3800 /
proberts@bellpottinger.com
Sarosh Zaiwalla, Zaiwalla & Co
+44 207 312 2000 /
s.zaiwalla@zaiwalla.co.uk
11.12.2013 EquityStory.RS, LLC's Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Kazakhstan Kagazy PLC
33-37 Athol Street
IM1 1LB Douglas
Isle of Man
Phone: +7-727-244-87-87
Fax: +7-727-244-87-82
E-mail: ir@kagazy.kz
Internet: www.kazakhstankagazy.com
ISIN: US48667M2035
Listed: London
Category Code: MSC
TIDM: KAG
Sequence Number: 1812
Time of Receipt: Dec 11, 2013 17:53:15
End of Announcement EquityStory.RS, LLC News-Service
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(END) Dow Jones Newswires
December 11, 2013 11:53 ET (16:53 GMT)
