"Sibcem" Thinks That the Former President of the Company Andrey Muraviev is Misleading the Minorities of the Holding Company
KEMEROVO, Russia, March 13, 2013 /PRNewswire/ --
Recently the analytical agency RUXX Index reported that the former President of OJSC "HC "Sibcem" ("Sibirskiy Cement") Andrey Muraviev has been nominated for the Board of Directors of the Company. At the same time Mr. Muraviev made comments that the Holding Company perceived negatively.
"Indeed Parus capital opportunity fund proposed Andrey Muraviev as a candidate. And actually it has a right to do it as it holds 2% of shares of OJSC "HC "Sibcem". However, the comments of the former President of our Company, made in connection with these events, misinform the Minority Shareholders and concern information attacks against the Holding Company in 2012-2013" - considers Daria Martynkina, the Director of Public Relations of "Sibirskiy Cement".
In her opinion, "Mr. Muraviev has made a number of populist statements. For instance, it is misleading to say that when he becomes a member of the Board of Directors of "Sibcem" he will be able to influence the order of dividend payments. Meanwhile the decision to pay dividends is made not by the Board of Directors, but by the General Meeting of Shareholders which can direct funds to the development of the Company or make a decision on distribution of profit."
In recent years the Holding Company "Sibirskiy Cement" has conducted a strong investment policy. "The Shareholders decided to invest in modernization of the production and reinforcement of the market power of the Company in order to gain more profits in the future (establishment together with State Corporation "Rostechnologii" of "Russian Cement Company", which now possesses 50,52% of shares of OAO "Angarskcement"; purchase of 10% of shares of OAO "Iskitimcement"; purchase and inclusion into the Holding Company of OOO "Mining Company", OOO "Western-Siberian Concrete Plant" etc.). During the period from January 2008 till October 2008 the cement prices have fallen by half because of the global financial crisis which inevitably led to the fall of Company profit, its capitalization. However, at present time the market has reached the pre-crises level of the volume of consumption (but not of the price). According to our estimates in 2013 the SFD cement market will show a 5% growth rate. Most analysts recommend "to hold" and "to purchase" the shares of "Sibirskiy Cement", - says D. Martynkina.
Andrey Muraviev was the President of OJSC "HC "Sibcem" from 2004 till 2008. During this period, as it was found during the audit of the legal validity of the Company management in 2004-2008, made under the order of the Board of Directors, a number of questionable management decisions had been taken, including transaction between OJSC "HC "Sibcem" and Ciments Français.
Moreover, a group of "Sibcem" former top managers who left the Company together with Andrey Muraviev concluded some loan agreements on behalf of the Holding Company and its subsidiaries. The general loss from these actions is estimated by experts as more than 150 mln. RUB. In particular, in April 2011 the Arbitrazh Court of Kemerovo Oblast recovered from OOO "SPIK", a Company established by A. Muraviev and a former member of the Board of Directors A. Kirikov, more than 38,5 mln. RUB in favour of OOO "Topkinsky Cement" (a subsidiary of OJSC "HC "Sibcem"); the court decision has come into force.
In RUXX Index message the analyst Michael Thompson called the possibility of A. Muraviev's return to the Holding Company "a boon for shareholders". Let us remind that on May 26, 2012 a publication "RUXX: Western Companies Appeal to Russian President to Curb Corruption" was posted on the Russian Industrial Leaders Index (RUXX) site, and also spread in a form of a press release on a commercial basis. It contained erroneous information which discredits the reputation of OJSC "HC "Sibcem" of which "Sibkonkord" is a shareholder. "Sibkonkord" publicly rejected the information in the RUXX publication as provocative and incorrect. On June 1, 2012 Italcementi Set Group issued a formal appeal to Russian and foreign mass media after the RUXX publication. It says: "Italcementi Group refers to false and unsubstantiated rumors that have recently appeared on Russian press concerning alleged communications addressed to Russian political authorities seeking their support in the pending litigation in Russia with Sibirskiy Cement. Italcementi Group denies that it has in any way - directly or indirectly - contacted political authorities in Russia". This quote was published on the RUXX site as a "correction" to the article (http://www.ruxxindex.com/home/2012/5/26/correction-ruxx-western-companies-appeal-to-russian-presiden.html). FPS "Sibkonkord" is sure that Italcementi Set Group and Ciments Français are not involved in this incident which is, "in our opinion, initiated by third parties in order to discredit the reputation of "Sibcem", influence the international public opinion and Russian judicial authorities."
SOURCE OJSC HC Sibcem