Chagala Soars As It Allays Fears About Imminent Fund-raising
Shares in Chagala Group Ltd (LON:CGLO) shot up Thursday as it said it had no plans at present to raise funds through a share issue. The company’s financial situation has been a bit cloudy since it arranged a credit facility with Bank CenterCredit, a Kazakhstan bank, which would require repayment of its existing loan from Al Hilal Bank.
The company believes that amounts available under the Bank CenterCredit will provide the group with sufficient funds to meet its current financing requirements, including the repayment in full of the group’s Kazakh tenge-denominated bonds, which are due to mature on 1 December 2016, and the repayment of the Al Hilal loan. In mid-morning trading Chagala’s shares were up 20% at 1.8p.
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.