Chagala Says Tipp Seeks Capital Raise Suspension Until October Hearing
LONDON (Alliance News) – Chagala Group Ltd on Monday said TIPP Investments PCC is seeking the suspension of Chagala’s recently announced placing and open offer until October 27.
The Kazakhstan-focused oil and gas services firm earlier this month said it will raise USD5.8 million via a placing and open offer to repay its tenge-denominated bonds.
However, on Monday, Chagala said it has been informed that TIPP filed an application in the East Caribbean Supreme Court, which is within the Commercial Division of the High Court of Justice of the British Virgin Islands.
The application was for a court order requiring the suspension of the placing and open offer until October 27, when a separate hearing will take place in relation to a claim filed by TIPP against Chagala.
The application was made on various grounds, including that the placing and open offer would prejudice TIPP’s rights as a shareholder in the company.
“The company believes that there is no reasonable basis for such an order to be granted and intends to vigorously contest the application,” Chagala said.
A hearing on the application is expected to take place on Thursday. Chagala said if the court denies the application, the capital raise will proceed in line with its earlier timetable.
Shares in Chagala were untraded on Monday, having last traded at USD1.50.
Chagala is a service company focused on providing long and short term accommodation solutions to domestic and international oil and gas companies developing Kazakhstan’s largest hydrocarbon discoveries. With the ownership of hotels, guest houses, serviced apartments, remote site facilities, restaurants and offices in its portfolio, Chagala is well positioned to capitalize on the oil and gas investment being made in Kazakhstan.