CAIH urges Hurricane directors to promptly form independent committee

Apr 16, 2001, 01:00 ET from Central Asian Industrial Holdings, N.V.

    TORONTO, April 16 /PRNewswire/ - Mr. Askar M. Alshinbaev, Managing
 Director of Central Asian Industrial Holdings, N.V. ("CAIH"), today released
 the following statement in response to a news release issued by Bernard
 Isautier, Chairman of the Board of Hurricane Hydrocarbons Ltd. ("Hurricane"),
 commenting on CAIH's proposal issued after the close of trading in North
 America on Thursday, April 12, 2001.
 
          "Notwithstanding Mr. Isautier's dismissive initial
          comments, we expect that, at their meeting tomorrow,
          Hurricane's directors will move quickly to create a
          committee of directors of Hurricane independent from
          CAIH and the management of Hurricane. We expect
          that committee, in accordance with its duties and
          responsibilities under applicable securities laws, will
          not delay the process and will act promptly to engage
          outside professional advisors to provide an
          independent valuation of Hurricane. This will allow
          Hurricane's shareholders to receive a formal offer
          from CAIH.
 
          "CAIH's $189 million, fully-financed proposal offers to
          pay shareholders $10.25 per share. The offer
          represents a 22% premium over the weighted
          average closing price of Hurricane's shares for the 20
          trading days prior to April 12, and a 27% premium
          over the weighted average closing price of the
          company's shares for the 90 trading days prior to April
          12.
 
          "We are satisfied, based on the advice of our legal
          counsel, that our offer, which is available to all
          shareholders, will comply with CAIH's Shareholders'
          Agreement with Hurricane and with Hurricane's
          Shareholders' Rights Plan. The terms of the
          Shareholder Agreement explicitly permit CAIH to
          make a takeover offer to all shareholders. And both
          the Shareholders' Agreement and Shareholders'
          Rights Plan require that any offer be made to all
          shareholders and our offer will meet that requirement.
 
          "CAIH is a serious bidder that has demonstrated its
          commitment to Hurricane in the past as the
          company's largest shareholder and key partner.
          Hurricane's recent restructuring was made possible
          because of the partnership between Hurricane and
          CAIH and we remain committed to enhancing
          Hurricane's growth and profitability."
 
     CAIH is a Netherlands Antilles-based investment holding company
 associated with the Kazkommertsbank group of companies in Kazakhstan. CAIH
 currently focuses its investment activities on companies operating in
 Kazakhstan in oil and gas, power generation and telecommunications. Besides
 its 30% share ownership in HHL, CAIH holds a 35% share in Nelson Resources
 Limited, a TSE-listed company with oil and gas interests in Kazakhstan.
     Kazkommertsbank is Kazakhstan's leading private bank engaged in banking
 and financial services. Its shares are listed in Kazakhstan and London.
 
 

SOURCE Central Asian Industrial Holdings, N.V.
    TORONTO, April 16 /PRNewswire/ - Mr. Askar M. Alshinbaev, Managing
 Director of Central Asian Industrial Holdings, N.V. ("CAIH"), today released
 the following statement in response to a news release issued by Bernard
 Isautier, Chairman of the Board of Hurricane Hydrocarbons Ltd. ("Hurricane"),
 commenting on CAIH's proposal issued after the close of trading in North
 America on Thursday, April 12, 2001.
 
          "Notwithstanding Mr. Isautier's dismissive initial
          comments, we expect that, at their meeting tomorrow,
          Hurricane's directors will move quickly to create a
          committee of directors of Hurricane independent from
          CAIH and the management of Hurricane. We expect
          that committee, in accordance with its duties and
          responsibilities under applicable securities laws, will
          not delay the process and will act promptly to engage
          outside professional advisors to provide an
          independent valuation of Hurricane. This will allow
          Hurricane's shareholders to receive a formal offer
          from CAIH.
 
          "CAIH's $189 million, fully-financed proposal offers to
          pay shareholders $10.25 per share. The offer
          represents a 22% premium over the weighted
          average closing price of Hurricane's shares for the 20
          trading days prior to April 12, and a 27% premium
          over the weighted average closing price of the
          company's shares for the 90 trading days prior to April
          12.
 
          "We are satisfied, based on the advice of our legal
          counsel, that our offer, which is available to all
          shareholders, will comply with CAIH's Shareholders'
          Agreement with Hurricane and with Hurricane's
          Shareholders' Rights Plan. The terms of the
          Shareholder Agreement explicitly permit CAIH to
          make a takeover offer to all shareholders. And both
          the Shareholders' Agreement and Shareholders'
          Rights Plan require that any offer be made to all
          shareholders and our offer will meet that requirement.
 
          "CAIH is a serious bidder that has demonstrated its
          commitment to Hurricane in the past as the
          company's largest shareholder and key partner.
          Hurricane's recent restructuring was made possible
          because of the partnership between Hurricane and
          CAIH and we remain committed to enhancing
          Hurricane's growth and profitability."
 
     CAIH is a Netherlands Antilles-based investment holding company
 associated with the Kazkommertsbank group of companies in Kazakhstan. CAIH
 currently focuses its investment activities on companies operating in
 Kazakhstan in oil and gas, power generation and telecommunications. Besides
 its 30% share ownership in HHL, CAIH holds a 35% share in Nelson Resources
 Limited, a TSE-listed company with oil and gas interests in Kazakhstan.
     Kazkommertsbank is Kazakhstan's leading private bank engaged in banking
 and financial services. Its shares are listed in Kazakhstan and London.
 
 SOURCE Central Asian Industrial Holdings, N.V.