Kazakhstan Kagazy PLC  / Re Agreement

03.10.2014 05:16

Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS, LLC - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Almaty, 3 October 2014 г. - Kazakhstan Kagazy PLC (KK) and Alliance Bank JSC (Alliance) are pleased to announce that they have agreed terms upon which KK Group's outstanding loan indebtedness to Alliance Bank (totalling about KZT15.3bn, including interest and penalties) will be fully and finally settled. Under the terms of the signed settlement agreements, KK will transfer its selected non-core assets, including land plots and Class B warehouses to Alliance. As a result, KK will exit the logistics business. The settlement will allow KK to reduce significantly its overall debt level and free financial and management resources to focus on the company's core growing and profitable recycling and paper manufacturing operations.
In addition, KK will pay between 2.7bn and 5.4bn KZT to Alliance, depending on the outcome of KK's proceedings in London against the company's former shareholders. KK's CEO, Tomas Mateos Werner, commented: 'I am very pleased that we have reached a settlement with Alliance that allows us to continue growing our recycling business. I also believe that we have gained a strong partner in Alliance Bank to support our long-term strategy and investments in Kazakhstan.' Alliance's Chairman, Timur Issatayev, commented that the Bank's strong preference is to reach settlements with its debtors through a constructive dialogue.
Contact:
Sadyr Shaguzhayev, Head of IR
+7-727-244-8787



03.10.2014 The EquityStory.RS, LLC 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:      AGR
TIDM:               KAG
Sequence Number:    2308
Time of Receipt:    Oct 03, 2014 05:16:16
 
End of Announcement EquityStory.RS, LLC News-Service  

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