Kazakhstan Kagazy PLC
Kazakhstan Kagazy PLC: extends claim against former shareholders, announces cooperation with Alliance Bank

Kazakhstan Kagazy PLC extends claim against former shareholders, announces cooperation with Alliance Bank

Kazakhstan Kagazy PLC (‘KK’) has today announced that it has extended its fraud claim against the company’s former directors and shareholders, Maksat Arip and Baglan Zhunus, to over $200m. The further claim is based on recently uncovered evidence indicating that the former shareholders misappropriated funds received directly from investors in the company’s 2007 IPO on the London Stock Exchange. In addition to extending its claim, KK has been given permission by the High Court to add Mrs Sholpan Arip as a defendant. KK’s application to amend the claim will be heard early in the new year.

Alliance Bank, one of the largest banks in Kazakhstan, has also announced that it is pursuing in the High Court a separate $300m claim against Mr Arip and Mr Zhunus in relation to the 2009 IPO of Exillon Energy, which was also owned by both men before being listed in London.

KK and Alliance Bank, which each claim to have been victims of large frauds by Messrs Arip and Zhunus, look forward to cooperating to pursue their common aim of securing the return of monies to Kazakhstan.

KK’s Chairman, Sir Tony Baldry, commented: ‘the strengthening of our claim, and the launch of a separate claim by Alliance Bank, demonstrates that the net is closing on the former shareholders.’

Alliance Bank’s CEO, Timur Issatayev, stated: ‘we intend to ensure that all misappropriated funds are returned to Kazakhstan’

For more information please contact:

Mr. Sadyr Shaguzhayev +7 727 244 02 08
Head of Investor Relations ir@kagazy.kz