“I HAVE PAID SEVERAL TIMES LESS FOR 68% OF ARMAVIA THAN THE ANNOUNCED
$50 MLN,” SAYS HEAD OF MIKA ARMENIA TRADING

YEREVAN, JUNE 11. ARMINFO. Head of Mika Armenia Trading Mikhail
Baghdasarov has refuted the assessment of the Russian experts of
aviation market that he managed to get the full package of Armavia’s
shares for $50 mln.

“Rather big sum has been spent for 68% of the shares, but by far not
$50 mln, several times less. It is difficult today to find a company
worth $50 mln in Armenia,” Baghasarov told Novoye Vremya newspaper. He
said the payment was carried out due to the credits from European and
Russian banks. Commenting on the position of “Siberia,” Mikhail
Baghdasarov stated that “Siberia” leadership is satisfied with the
present deal as having large-scale projects both in Russia and outside
it, it started losing the interest in the Armenian market which was
too small for it. That is why, the leadership of “Siberia” made a
decision to sell its shares and invest the proceeds in extension of
its business inside Russia and in the West. It has left the Armenian
market satisfied. The most important is that Armenia has got back the
air carrier developed enough to compete with representatives of a
number of foreign companies, Baghdasarov thinks.

Speaking of the plans of development of Armenia, M. Baghdasarov said
that first of all the level of service, equipment and safety of
flights must be upgraded to world standards. Regular flights to
Frankfurt and Amsterdam will be restored within the nearest future,
and new ones to Tashkent and Rome will be added. Besides, a flight
urgent for our compatriots Yerevan-Los Angeles is to open. As regards
the future, it is not ruled out that part of the shares will be sold
on the exchange. And it is desirable that Armenians from America,
Europe, Russia and Armenia should buy them. “Our final goal is to see
thousands of shareholders of the company, Armenians from various
states, hereby making the company national, Armenian,” the businessman
said.

A high-ranking source at “Siberia” commented on the deal to the
Russian “Kommersant”: “We have built a good company. We were proposed
enough big sum for it, that is why we have accepted the proposal on
the sale.” The market participants assess it at some $50 mln.

It should be noted that the leadership of “Siberia” purchased 50% of
Armavia’s shares from “Chernomoravia” in 2002 in favor of an
especially established LTD “Aviafin.” Later it received 18% from Mika
Armenia Trading. The investment contract between “Siberia” and Armavia
was signed on March 14 2003. 68% of Armavia’s shares belong to
“Aviafin” registered in Armenia, which belongs to the leadership of
“Siberia” as natural persons. The remaining 32% is the share of LTD
Mika Armenia Trading belonging to the Armenian businessman Mikhail
Baghdasarov.

From: Emil Lazarian | Ararat NewsPress