ALMATY, Kazakhstan - (Business Wire) Kazakhstan Kagazy PLC (the
“Company
” or
“Kagazy
”) (LSE: KAG), one of Kazakhstan
’s leading industrial groups, today announced that the market value of land and warehouse facilities owned by its subsidiaries amounted to US$ 361 million as at December 31, 2007, according to an independent appraisal performed by CBRE Scot Holland. This valuation does not include the recent acquisition of Astana Contract or the assets of Kagazy Recycling, the paper division of the Company.
During the first quarter of 2008, Kagazy also acquired an additional 84 hectares of land, adjoining its Northern plot. The purchased plot was landlocked prior to the acquisition. As a result, the purchase price amounted to US$ 262,000 per hectare which constituted a substantial discount to the land valuation achieved for the Northern plot of US$ 528,000 per hectare. Following this acquisition, the total size of Kagazy’s industrial park project which is planned on its Northern plot was increased to 568 hectares. The additional land has not yet been independently appraised.
Maksat Arip, Chief Executive Officer of Kazakhstan Kagazy PLC, commented: “The value of Kagazy’s industrial property assets was not affected by the recent softening of the real estate market in Kazakhstan. We launched the first phase of the PEAK Logistics Centre which is now fully operational while the valuation of our Northern and Southern plots has benefited from new transport links being built by the Kazakh government. Both plots are strategically located in a newly created industrial zone near Almaty.”
For further information, please visit www.KazakhstanKagazy.com
Kazakhstan Kagazy PLC runs Central Asia’s largest producer of paper, corrugated board and packaging products. It also operates one of the leading industrial real estate development companies in the country through Prime Estate Activities Kazakhstan LLP (Peak), which owns approximately 545 hectares of prime land, strategically located in a newly created industrial zone near Almaty, for construction of commercial warehousing and logistics infrastructure facilities. The Group reported total assets of approximately US$ 647.5 million as at September 30, 2007 and consolidated revenues of approximately US$ 58.9 million for the first nine months ended September 30, 2007, according to unaudited IFRS financial results. Kazakhstan Kagazy’s securities are listed under the symbol “KAG” on the London Stock Exchange.
This interim statement contains certain forward-looking statements with respect to the financial condition, results, operations and businesses of Kazakhstan Kagazy plc. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this interim statement should be construed as a profit forecast.
Kazakhstan Kagazy
Business Development
Yuriy Bogday, +7 727 244 8790
y.bogday@kagazy.kz
or
Kazakhstan Kagazy
Investor Relations
Alessandro Manghi, +7 727 244 8787
a.manghi@kagazy.kz
or
Shared Value Limited
Investor Relations
Larisa Kogut-Millings, +44 20 7321 5037
kagazy@sharedvalue.net
