Eurocement appeals decision to annul privatization of its Uzbek subsidiary
03/09/2014 00:49
Eurocement appeals decision to annul privatization of its Uzbek subsidiary
03/09/2014 00:49
Tashkent, Uzbekistan (UzDaily.com) -- Supreme Economic Court of Uzbekistan received appeal of the Russian company Eurocement Group on decision of the court on annulling privatization of Ahangarancement, second largest cement producer in Uzbekistan.
Interfax reported quoting source in the court that the appeal will be considered in the middle of September 2014.
The source in Ahangarancement said that currently the sides are holding negotiations on signing settlement. The source said that the decision of the court will be based from these negotiations.
On 21 July 2014, the Uzbek court declared invalid privatization of the cement plant. The State Committee of Uzbekistan for privatization, demonopolization and development of competition brought a suit on declaration of privatization of the plant as invalid.
Eurocement Group (Russia), a largest shareholder of the cement plant, dismisses claims of the Uzbek committee and plans to appeal the decision of the court. The Russian firm has 30 days to appeal, but if the company loses the case, its assets will be nationalized.
Eurocement Group acquired 75.5% stake in Ahangarancement in August 2006 in the secondary market. Currently, its share makes up almost 84%. Other shareholders are individuals.
Ahangarancement is the second largest cement producer in Uzbekistan. Its designed capacity is 1.986 million tonnes of cement a year. Its share in internal market is about 30%. The plant exports its products to Kazakhstan, Kyrgyzstan and Turkmenistan.
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