Dirty tricks at Karaganda

Dirty tricks at Karaganda
Published: 13 April 2004

Shareholders of Central Asia Cement enterprise (former Karaganda cement plant) are judicially deciding the right to own the property. Last Monday in Karaganda a press conference devoted to internal problems was held. Representatives of Malaysian company Kazakhstan Asset Management Limited holding 51 per cent of the plant shares participated in the conference. The representatives of the main holder at present actions of new shareholders of the enterprise threat further successful activity of Karaganda cement plant.

Early in 2004 the second block of shares (49 per cent) owned by Kazakhstan Investment Fund Limited was resold to three companies: Visor Investment Solutions and Kauzhar in Kazakhstan, and Eurosys, Great Britain. The bargains and their legality are being disputed on Cayman Islands. Proceedings are also being held in New York and London arbitration court.

The new owners of the 49 per cent stake  after their request to the Karaganda economic court decided to hold an shareholders¹ extraordinary session. Representatives of the new shareholders dismissed the acting directors¹ board and appointed new members of management.

The Malaysian companies consider these actions as ³illegal seizure² of the enterprise. At the press conference it was announced the main shareholder would be claiming rehabilitation of his rights.