Press releases – 2010

Modification and improvement of corporate structure

21 Dec 2010

For: Chagala Group
Date: TBD, 2010

Re: Modification and Improvement of Corporate Structure.

Almaty – Chagala Group (Chagala or the ‘Company’) is pleased to announce that it has completed the process and has established a Netherlands structure. This new B.V. will hold the equity in the Company’s operating companies once the transfer of equity from the current B.V.I. entity is completed. This transfer is expected to be completed in the immediate future.

Tim Abson, CEO of Chagala Group commented that “as a result of a change in the banking regulation of the Republic of Kazakhstan, regarding provisions Kazakh banks are required to hold against loans made to entities in Kazakhstan with immediate ownership in jurisdictions with preferential tax regimes, Chagala has decided to establish a structure in the Netherlands. Once the transfer of equity is completed, the structure will ultimately allow the Company to return greater value to its shareholders by optimizing its tax obligations, attract additional funding for new projects and enhance our ability to demonstrate the transparency of our Company to the relevant authorities.“

Chagala is a service company focused on providing long and short term accommodation solutions to domestic and international oil and gas companies developing Kazakhstan’s largest hydrocarbon discoveries. With the ownership of hotels, guest houses, serviced apartments, remote site facilities, restaurants and offices in its portfolio, Chagala is well positioned to capitalize on the oil and gas investment being made in Kazakhstan.

The full press release in PDF format