The Moscow Arbitration Court has scheduled for May 16 the preliminary hearings of a RUB 3.35bn lawsuit filed by US-based investment fund Russia Partners against Russia’s Eurocement Group, an official with the court told said.
Russia Partners is seeking compensation for alleged profit stripping by Eurocement Group.
The investment fund filed the lawsuit through two of its subsidiaries, Kolden Holdings Ltd and Serpell Holdings Ltd, which hold a 44.4% combined stake in Russian cement producer Eurocement.
Eurocement Group, which holds the remaining 55.5% in Eurocement, changed the corporate structure of Eurocement without informing the other shareholders in order to redistribute a large part of Eurocement’s profit to itself, Russia Partners said.
In 2004 Eurocement’s net profit fell 68 per cent on the year to RUB409.341m, while Eurocement Group posted a net profit of RUB4.186bn, compared with a loss of RUB342.228m in 2003, Russia Partners said.