Corporation Kazakhmys OJSC categorically refutes information about a purchase of a share in Bank Caspian OJSC (Kazakhstan)

/IRBIS, Jan 22, 02/ - On January 25 of 2002 IRBIS agency published information that Russian Company LUKOIL that controlled through its subsidiaries about 70% of shareholders' equity of Bank Caspian OJSC (Almaty) sold all share of participation in the bank to a consortium of investors, which includes Corporation Kazakhmys OJSC (Zhezkazagan). A basis for this publication was corresponding notification of Bank Caspian OJSC, which bonds are traded in an official list of Kazakhstan stock exchange (KASE) under category "A", presented to KASE on January 15,2002 dated on the same date and signed by Deputy Chairman of the Board of the bank Mironov A.A. In information report attached to this notification it was said (beginning of the citation): "In December 2001 there were changes in owners structure of Bank Caspian OJSC. Oil company LUKOIL that controlled through its subsidiaries about 70% of shareholders' equity of the bank sold all share of participation in the bank to a consortium of investors, which includes Corporation Kazakhmys OJSC (Zhezkazgan). Russian Sibakadembank and a group of Kazakhstan companies", (end of the citation). Today the head of press service of Corporation Kazakhmys OJSC Vladislav Nikolaev connected with IRBIS agency with the purpose of categorical refute of the information about participation of its company in authorized capital of Bank Caspian OJSC. "Officially, as a head of the press service, I, Vladislav Nikolaev, refer to me, refute (this information)", he said by phone. "We are absolutely open company. There are no questions I am not able to answer to. We have no any commercial secrets, neither financial, nor production...we even didn't think about buying", assured Mr. Nikolaev. Vladislav Nikolaev also refuted information published in PANORAMA newspaper on January 18 (see below) concerning that Corporation Kazakhmys OJSC bought not shares but assets of Bank Caspian OJSC. "Once more it is not correct. We didn't buy any assets", said Nikolaev. "We have no intentions to get involved into banking sector. If we in Russia, assume, try to participate in a field in Bashkiria we do not hide it. At Utokan In Siberia - yes. Maybe, in Africa we will work together with Chinese - yes. But this concerns exploitation of copper fields. With respect to banking sector it is not our sphere and we are not specialists, we do not and are not going to deal with this sector. We have our own pension fund. It is, of course, for our staff. There is an insurance company for our employees. They are close joint stock companies, there are no any strange only our employees, it was done for their protection. We don't need bank at all", commented on this issue Vladislav Nikolaev. For the IRBIS query concerning this issue Bank Caspian OJSC presented to the agency information report signed by the Deputy Chairman of the Bank Mr. Mironov A.A., in which it is said about making decision by the bank to inform in more details public about investors structure, which took part in a deal on an acquisition of the shares block about that it was informed before. According to new information of the bank, these investors include: Koreans association of Kazakhstan, shareholders of Sibakadembank OJSC (Novosibirsk, Russia), Company Gidromashservice (Russia) and also a range of other production and commercial structures of Russia and Kazakhstan, which are not mentioned. Bank's employees who IRBIS agency contacted to refused to comment any more an origin of information received at KASE on January 15. For more detailed consideration of this issue IRBIS presents below in a full form a material of Oleg Khe published in PANORAMA newspaper for January 18 of current year. OWNER OF BANK CASPIAN HAS BEEN REPLACED During current week Kazakhstan stock exchange informed that Russian oil company LUKOIL sold its share in Bank Caspian, the head quarter of which is located in Almaty. Through its subsidiaries the company controlled about 70% share of the bank. Immediately after deal making the Board of Bank Caspian was changed. Igor Kim became the Chairman, his first Deputy Chairman - Aleksei Mironov. Extraordinary meeting of shareholders on which new composition of the Board will be approved was appointed for January 14. According to information of Mr. MIRONOV, a share of LUKOIL was sold to new owners, which can be differentiated into three groups. The first one is a Russian group affiliated with Sibakadembank, the second -Kazakhstan companies group, and the third is separate owner - Kazakhmys. These shareholders, based on Mr. Mironov words, are equal partners. He didn't comment share of each group saying, "Shareholders equity formation is not a process of one day". Meanwhile, bank's managers note that there is no domination of any group; it's close to the truth that each group of owners own approximately same share of shareholders equity. At the same time more precise information about actual owners may stay unknown since they are all indirect shareholders. Neither Sibakadembank, nor Kazakhmys, nor Kazakhstan companies group bought shares of Bank Caspian; they acquired shares of subsidiaries of LUKOIL - nominal holders of bank's shares. Therefore, formally, the register of Bank Caspian shareholders almost didn't change. It only excluded Petrocommerts Kazakhstan CJSC, which controlled 20.9% shares of Bank Caspian and still enters into Russian bank Petrocommerts structure - main settling bank of LUKOIL group. Other shares exceeding 5% of authorized paid capital belong to following companies: Leasing center-Astana LLP (Almaty) - 20.6%, Kazakhstan fuel company LLP (Astana) - 17.7%, Ayaks LLP (Almaty) - 17.5% and others. Total, according to the extract from the register, as of April 1,2001 number of common stocks holders of Bank Caspian OJSC was 4,807, privileged - 2,344. People from Russian group came into the Board. Igor Kim and Aleksei Mironov came from Novosibirsk Sibakadembank. It's clear that oil companies as in Russia - on example of Caspian Bank, in Kazakhstan - on example of Halyk bank stop unprofitable business. In October - November of last year already LUKOIL announced that it is going to sell all its unprofitable assets as a result transferred to one bank - Petrokommerts. From another side, when in 1997 company LUKOIL came in Kazakhstan then it aimed scale development of its business here. That is why it started creation in Kazakhstan of own financial institution for the management of own cash flows. Albaraka-bank was bought with this purpose, then a network of Kazdorbank. However, LUKOIL was not able to realize its plans in a full volume. Currently it takes part in CPC and Kumkol field. Originally, the company wanted significant number of smaller projects. It didn't happen and holding assets in the bank didn't make sense. According to the words of Deputy Chairman of the Board of Bank Caspian Yuriy Sorokin, the bank never serviced projects of LUKOIL company. "Shareholders always wanted the bank to be universal and sovereign", noted Sorokin. "This task was performed well; the bank is absolutely sovereign from whether LUKOIL is here or not since its business is well diversified here". Aleksei Mironov confirmed that all its obligations "the bank performed, performs and will perform as it financed new and old clients so it will do in the future". At the same time he noted that a new concept of Bank Caspian would be formed. In his opinion, the concept will be ready in February 2002. One of the main priorities should be a development of branch network. Today the bank has 17 branches, 61 settling and cash divisions and 53 exchanges offering more than 100 types of bank services. According to classification of the National Bank, Bank Caspian is in a first group of second tier banks of the country based on the transition to international accounting standards. In September 2000 international rating agency Thomson BankWatch confirmed to the bank granted in June of 1999 long-term rating at the level of "B". Volume of net income of Bank Caspian for the first 10 months of 2001 totaled KZT256m having increased 3.8 times in comparison with similar period of previous year. Shareholders equity of the bank as of October 01,2001 was about KZT1.6bn having increased for the year by 43.2%. Bank assets having increased for the same period by 89.6% totaled by the end of September of last year KZT12.9bn, including growth of liquid assets by 29.6%, more than KZT3.4bn.