Managerial Reshuffle at Eurocement

Managerial Reshuffle at Eurocement
Published: 19 November 2004

A conflict has erupted among Eurocement shareholders, with the Russia Partners fund suspecting other company shareholders of asset stripping.  The fund holds above 40 per cent in Eurocement, Russia’s second largest cement producer. Filaret Galchev, who owns a controlling share in Eurocement, and Mikhail Skorokhod, Eurocement president, recently left the company’s board, with Skorokhod also stepping down as company president. Last spring, Galchev initiated an additional share issue, worth $150m, at a shareholders meeting, which was blocked by Russia Partners. Galchev then proposed buying out the fund’s holding, but the parties failed to agree on the price. Soon afterwards, Russia Partners stopped getting information about Eurocement activities. In retaliation, the Kolden Holdings ltd company, a fund ally, filed a lawsuit with the Moscow arbitration court to make Eurocement accountable to its shareholders. In the meantime, the fund itself lodged a similar complaint with the Federal Service for Financial Markets.

The Russia Partners fund was founded by the Siguler Guff & company, which managers US investor’s assets.  Presently, the fund holds a controlling stake in the MTV Russia company, in addition to its shares in Eurocement.