Uzbek court overturns decision on Ahangarancement JSC nationalization
Tashkent, Uzbekistan, Dec.15
By Demir Azizov- Trend:
Board of Appeals of the Tashkent Regional Economic Court at the end of last week overturned a lower court decision to invalidate the privatization of Ahangarancement JSC, which is controled by Eurocement Group holding, a source in court told Trend.
"The decision of the board was taken on the basis of a settlement agreement, which was signed by parties to the litigation," said the representative of the court.
It is reported that the terms of the settlement agreement were not disclosed.
In March 2014 complex unscheduled inspection of financial and economic activity of Ahangarancement JSC started due to the criminal charges against several employees, Trend reported. However, the inspectors did not find large violations in the activity of the plant.
In July 2014, the Economic Court of Uzbekistan`s Tashkent region granted the claim of the Uzbek State Committee for Privatization, Demonopolization and Development of Competition to recognize invalid the contract for the sale of Ahangarancement JSC (Ahangaran city, Tashkent region). Cash in the bank accounts of the enterprise and fixed assets have been seized by court decision.
Ahangarancement JSC was privatized in accordance with the presidential decree in August 1994.
As the Ahangarancement JSC, Uzstroymateriali Joint Stock Company, Justice Department of Tashkent region, municipality of Akhangaran region, Center for Coordination and Control of Securities Market which attended the court as defendants also found the claim unfounded, but the court did not consider their position.
In late July 2014, the shareholders of the plant appealed to all these court decisions.
In 2006, Russian Eurocement Group holding purchased some 75.5 percent of shares in Ahangarancement JSC. At present, the share of Eurocement Group in the authorized capital of JSC is 83.92 percent.
In last July, the direct owner of the holding - Swiss Eurocement Holding AG (which owns 98 percent of Eurocement Group) announced its intention to increase its share in the authorized capital of the enterprise up to 100 percent.
Ahangarancement JSC is the second (of six) cement producers in terms of power in Uzbekistan - 1,986 million metric tons of cement per year.
In 2013, Ahangarancement increased cement production by 6 percent, compared to 2012 - up to 1.62 million metric tons, clinker production - by 13 percent, up to 1.167 million metric tons.
In March 2014, Ahangarancement received a license to mine limestone and marl deposits of Shavazsay (Almalyk district of Tashkent region) field with reserves of limestone in the amount of 36.4 million metric tons.
In July 2014, Eurocement Group signed contract with China CAMC Engineering Co. Ltd. (part of the Sinomach holding) on construction of a new cement plant on the basis of Ahangarancement worth $128 million.
In accordance with the Law "On protection of private property and guarantees the rights of owners of Uzbekistan", "private property, which arose in the process of privatization of state property is inviolable. The results of the privatization are not subject to revision and cancellation."