Moscow, Russia 14 NOV 2008 (SEPMC.COM) -- South Eastern Projects Management Company Limited (SEPMC) today signed the agreement to purchase 51% share in the Gorniak Limited Liability company, the holder of the crushed stone production site, and the option agreement allowing to further increase the SEPMC share up to 95%.
Gorniak Limited Liability Company is a holder of the license for the gravel (crushed stone) mine site near Anapa and Novorossiysk port, Krasnodarsky kray, Southern Federal District of Russia. Assets of Gorniak company comprise of 5 Kraz dump trucks, 3 industrial bulldozers, gravel crusher KMD-1750 (73cub m per hour throughput) creating gravel complying to the national standard GOST 23735-79 suitable for use in concrete and as a surfacing for road construction. Assets also include railroad link and various buildings on the 2 ha approved industrial site.
The license, valid until 2020, stilupates up to 300,000 cu m annual gravel producition. SEPMC plans to increase this amount to 500,000 cu m per year in 2009. License area is 32 ha, state-approved and registered gravel reserves are 3 820 thousand cubic meters. The independent valuation of the assets of Gorniak is US$3mln, annual sales are US$1.15mln.
"Gorniak strategic location allows for the timely supply of State company Olympstroy (Sochi city), Rusian 2014 Olympic games construction site. Russian government and personally President Putin has repeatedly reaffirmed the steady flow of state funds into the olympic site construction, guaranteeing the uninterrupting demand for the next five years," says Konstantin Kuranov, Director, South Eastern Projects Management Company.
The acquisition of Gorniak supports SEPMC’s strategy to expand its construction portfolio with stable performing crisis-proof assets. The transaction is expected to be completed by the end of December 2008.
SEPMC was represented by Smirnov, Davydov and Susskind on this transaction.
SEPMC is a global diversified company with assets in chemical and farmaceutical manufacturing, general construction and civil engineering. For more information, visit www.sepmc.com.
Statements in this press release that are not strictly historical are “forward-looking” statements within the meaning of the safe harbor provisions of the federal securities laws. Actual results may differ materially due to risks and uncertainties. SEPMC undertakes no obligation to release publicly the results of any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contact:
South Eastern Project Management Company Limited
Kirill Chashchin, Director
info@se-pmc.com