Volga-Dnepr Group / Press-center / Media Coverage

Kaskol has lost its «Fight for Volga-Dnepr»

06/20/2006

The conflict between shareholders of Volga-Dnepr company seems to be resolved. The arbitration court of Moscow has acknowledged the validity of the transaction on transfer of 16 % of Volga-Dnepr shares to the management of the company, thus dismissing the claims of Kaskol Group, the ex-shareholder.

Artem Voskoboynikov, the vice-president of Volga-Dnepr told “Business” that the court waived Kaskol claim yesterday. The reason of the waiver was not stated. "Business" has informed that Kaskol Group has tried to cancel the transaction on transfer of 16% of Volga-Dnepr shares to the management of the company. In 2002 the parties signed the agreement according to which Volga-Dnepr Moscow had the right to reacquire 16 % of its shares from Volga-Dnepr-Kaskol-Invest LLC, in which Kaskol was the majority shareholder.

The transaction could be effected in case of non-observance of parties arrangements, providing the right of management of Volga-Dnepr to have 1 % more shares than Kaskol. Kaskol gradually increased its shareholding of Volga-Dnepr shares which had reached 48,9 % in 2004. The company management possessed only 45 % of shares. Thus, according to Sergey Nedoroslev, the President of Kaskol, explanations to "Business", the company management approved all transactions on purchase of additional shares by Kaskol.

At the end of the year 2005 the 6.4% holding of shares of Alexey Isaikin, the President of Volga-Dnepr Group, was attached during the process of divorce. At the same time the company management decided to write off 16 % of shares from Kaskol to increase its share up to 61.6%. Later, Sergey Nedoroslev sold his share of Volga-Dnepr shares in favour of LPK Holding company.

Then Kaskol found the investor. Volga-Dnepr management resisted such efforts and gained 16% of shares by means of legal technicalities. "The process of forcing out of Nedoroslev from Volga-Dnepr was started" — Oleg Sudakov, analyst Rye, Man and Gor Securities, reminds.

The resolution of the conflict concerning shareholding prior to IPO is important for Volga-Dnepr. The company is planning to place its shares through a specially created holding structure, and it is essentially important, that the structure of its share capital is precise and clear. "All these problems related to the structure of the capital and shareholders are no good for the company. While the year of 2007, the date of IPO, is a near-term perspective", — Sudakov says.

We failed to get Kaskol comments yesterday. It is unknown, whether the company plans to challenge the decree. According to analysts opinion, such actions are not of major importance for Kaskol from the business perspective: its share has been sold. "There is no need to prosecute if the transaction have been closed out. But, there may be some other motives'", — Oleg Sudakov considers, noting, that corporate conflicts may develop illogically, so it may be hard to do forecasts.

Business

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