Almaty, Kazakhstan – December 28 , 2007 – Kazakhstan Kagazy PLC (the “Company” or “Kagazy”) (LSE: KAG), owner of one of Kazakhstan’s leading industrial groups, today announced the decision of the Board of Directors of Kazakhstan Kagazy JSC, its wholly owned subsidiary, and its affiliated companies to increase the share capital of Kagazy Recycling LLP and affiliated companies by US$ 10 million. This was made in accordance with the prior agreement with the European Bank for Reconstruction and Development.
The Board of Directors also announced the increase of the share capital of Kazakhstan Kagazy JSC and its affiliated companies by US$ 24 million to facilitate the financing of its future development projects.
Kazakhstan Kagazy PLC also announced that it has extended US$ 38.4 million loan to its subsidiaries to refinance their existing debt.
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Kazakhstan Kagazy PLC runs Central Asia’s largest producer of paper, corrugated board and packaging products. It also operates one of the leading industrial real estate development companies in the country through Prime Estate Activities Kazakhstan LLP (Peak), which owns approximately 545 hectares of prime land, strategically located in a newly created industrial zone near Almaty, for construction of commercial warehousing and logistics infrastructure facilities. The Group reported total assets of approximately US$ 647.5 million as at September 30, 2007 and consolidated revenues of approximately US$ 58.9 million for the first nine months ended September 30, 2007, according to unaudited IFRS financial results. Kazakhstan Kagazy’s securities are listed under the symbol “KAG” on the London Stock Exchange.
This announcement includes statements which are, or may be deemed to be, "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services) are forward-looking statements.
By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. These factors include but are not limited to those described in the formal prospectus to be issued in connection with the Offering.
Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement speak only as at the date of this announcement and are subject to risks relating to future events and other risks, uncertainties and assumptions in relation to the Company's operations, results of operations, growth strategy and liquidity. Subject to any legal or regulatory requirements, the Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
