EUROPEAN BANK INTENDS TO SELL ITS SHARE IN CAPITAL OF ‘SHEN-CONCERN’ CJSC TO ANOTHER TWO COMPANY STOCKHOLDERS

Arminfo
2008-06-12 12:17:00

The European Bank for Reconstruction and Development (EBRD) intends
to sell its share at the rate of 36,37% in the authorized capital of
"Shen-Concern" CJSC to another two stockholders of the Company.

As "Shen-Concern" CJSC told ArmInfo today, EBRD will sell 26,39%
and 10,28% of its shares to the Company President Samvel Beglaryan
and vice President Ara Hasratyan. As a result of the transaction,
S. Beglaryan’s share will grow from the present 45,48% of shares
to 71,87%, and A. Hasratyan’s share – from 17,71% to 27,99%. The
remaining shares have been distributed among other small stockholders
of the Company. "Shen- Concern" also informed that the agreement
with EBRD on participation in the capital was signed in 2004, and
in 2005, EBRD entered the Company’s capital at the rate of 24% and
then increased the share to 36,67%. The agreement was signed with the
right of sale of the shares upon expiry of three years, which the bank
took advantage of. Yesterday, RA Commission for Protection of economic
Competition gave consent for the transaction fulfillment. According to
the Commission, the transaction is being carried out within the frames
of one company and it does not affect the competitive environment.

To recall, upon the results 2007, the net profit of "Shen-Concern"
CJSC, being a leader in production of building materials in Armenia,
grew by 12,3% to 387809 thsd drams ($1,2 mln), as compared with 2006.