Central Asian Industrial Holdings, N.V. offers to acquire control of Hurricane Hydrocarbons Ltd.

Apr 12, 2001, 01:00 ET from Central Asian Industrial Holdings, N.V.

    TORONTO, April 12 /PRNewswire/ - Central Asian Industrial Holdings, N.V.
 ("CAIH") today announced that it has submitted a proposal to acquire 18.4
 million Class A Common Shares of Hurricane Hydrocarbons Ltd. ("HHL") at a cash
 price of Cdn.$10.25 per share. CAIH currently holds approximately 30%, or 23.9
 million of HHL's outstanding Class A Common Shares.
     If the offer is successful, CAIH would hold a majority of HHL's
 outstanding Class A Common Shares. The offer price represents a premium of 22%
 over the weighted average closing prices of the Common Shares on The Toronto
 Stock Exchange over the 20-trading day period ended yesterday. The value of
 the offer is approximately Cdn$189 million.
     In a letter to HHL, CAIH stated: "We believe that this transaction is in
 the best interests of all shareholders of HHL because it provides them with a
 significant premium over recent market prices. At the same time, HHL
 shareholders will be able to participate, through the retention of a portion
 of their shareholdings, in the upside potential that CAIH will strive to
 realize in HHL. We believe that this transaction, when completed, will
 stimulate HHL's current and future operations."
     The offer will be subject to certain conditions, including CAIH holding a
 majority of the Common Shares at expiry; HHL's shareholder rights plan having
 been removed, waived or rendered inapplicable with respect to the offer; CAIH
 having received all necessary approvals and consents with respect to the
 offer; and no material changes having occurred at HHL (including changes in
 its capitalization and in the compensation of management outside of the
 ordinary course).
     CAIH currently holds approximately 30% of HHL's Outstanding Class A
 Common Shares. Accordingly, the offer is an "insider bid" under applicable
 Canadian securities laws. This requires that a valuation of the Common Shares
 be prepared under the supervision of an independent committee of the board of
 directors of HHL. CAIH has requested that HHL take immediate action to
 establish an independent committee and to promptly engage an independent
 valuator to prepare the valuation.
     CAIH has also requested that HHL refrain from taking any action, such as
 entering into any agreement or understanding, that could deprive HHL's
 shareholders of an opportunity to consider and respond to the offer.
     CAIH will mail to the HHL shareholders an offering circular containing
 the details of the offer promptly following receipt of the valuation.
     CAIH has engaged BMO Nesbitt Burns Inc. to serve as its financial advisor
 for the transaction.
     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 12 /PRNewswire/ - Central Asian Industrial Holdings, N.V.
 ("CAIH") today announced that it has submitted a proposal to acquire 18.4
 million Class A Common Shares of Hurricane Hydrocarbons Ltd. ("HHL") at a cash
 price of Cdn.$10.25 per share. CAIH currently holds approximately 30%, or 23.9
 million of HHL's outstanding Class A Common Shares.
     If the offer is successful, CAIH would hold a majority of HHL's
 outstanding Class A Common Shares. The offer price represents a premium of 22%
 over the weighted average closing prices of the Common Shares on The Toronto
 Stock Exchange over the 20-trading day period ended yesterday. The value of
 the offer is approximately Cdn$189 million.
     In a letter to HHL, CAIH stated: "We believe that this transaction is in
 the best interests of all shareholders of HHL because it provides them with a
 significant premium over recent market prices. At the same time, HHL
 shareholders will be able to participate, through the retention of a portion
 of their shareholdings, in the upside potential that CAIH will strive to
 realize in HHL. We believe that this transaction, when completed, will
 stimulate HHL's current and future operations."
     The offer will be subject to certain conditions, including CAIH holding a
 majority of the Common Shares at expiry; HHL's shareholder rights plan having
 been removed, waived or rendered inapplicable with respect to the offer; CAIH
 having received all necessary approvals and consents with respect to the
 offer; and no material changes having occurred at HHL (including changes in
 its capitalization and in the compensation of management outside of the
 ordinary course).
     CAIH currently holds approximately 30% of HHL's Outstanding Class A
 Common Shares. Accordingly, the offer is an "insider bid" under applicable
 Canadian securities laws. This requires that a valuation of the Common Shares
 be prepared under the supervision of an independent committee of the board of
 directors of HHL. CAIH has requested that HHL take immediate action to
 establish an independent committee and to promptly engage an independent
 valuator to prepare the valuation.
     CAIH has also requested that HHL refrain from taking any action, such as
 entering into any agreement or understanding, that could deprive HHL's
 shareholders of an opportunity to consider and respond to the offer.
     CAIH will mail to the HHL shareholders an offering circular containing
 the details of the offer promptly following receipt of the valuation.
     CAIH has engaged BMO Nesbitt Burns Inc. to serve as its financial advisor
 for the transaction.
     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.