Mass Buying of Shares of Holcim (Azerbaijan)

In the last days on the BSE there have been active transactions on purchase and sale of minority interests of Holcim (Azerbaijan). The mass purchase of shares regards Azer Invest Company, which is a minority shareholder in the Garadagh cement plant.

Only five trading sessions, the BSE in October, there were 10 transactions in shares of cement plant. With increased operations have gone up and the price for the shares. The stock price for transactions is 48.39 manat. Two months ago, transactions are processed in an average of 32 manat. However, some observers believe that this process may be present and manipulate the prices of the securities market. In one of the brokerage firms, has a contract with JSC "Azer Invest Company buying shares Holcim (Azerbaijan) told Turan that the increase in the price of shares of Holcim (Azerbaijan is based on the rules of exchange trade, ie of 20% acceptable level of price growth in a single trading session. In brokerage companies believe that 48.39 manat for 1 share of Holcim (Azerbaijan) with a nominal value of AZN 20 is a real price. "At the door of the office of Azer Invest Company there is a pasted announcement of purchase of shares at this price," said the brokerage company.

It is noteworthy that shareholders have a different opinion on the matter. According to them, in order to sell his shares at a specified price requires a minimum of ten shareholders. And this is, in fact, impossible, as the minority shareholders do not know companions in sentiment of Holcim (Azerbaijan). On this block of shares, consisting of 186 pieces, they are forced to sell at 6,000 manat that is 32.25 manat for 1 piece.

Minority shareholders (about 800 people) of Holcim (Azerbaijan) are mostly members of the personnel Garadagh cement plant and its former employees. They acquired these shares as a result of privatization of the company in 1998.

In 1999, during the investment tender 86% of shares acquired Swiss company Holcim Ltd. Later it sold 10% stake to the European Bank for Reconstruction and Development and the state of "Azerbaijan Investment Company". After the reduction of cement plant workers in the early 2000s financial situation deteriorated shareholders and many of them are forced to sell shares at a proposed price.

The company started paying dividends after joining the EBRD's shareholders in 2008. The second quarter 2009 dividend payment has been suspended in connection with the realization of the investment project to modernize the cement plant, which cost 300 million euro. Full repayment of debts to the donors of the project is scheduled for completion in 2015. By the time the profit of JSC Holcim (Azerbaijan) will be directed to pay off debt, and dividends will not be paid.

Turan could not get a comment of Azer Invest Company policy on the acquisition of shares of cement plant. The company was founded in 2009 and since then regularly engaged in buying shares of Holcim (Azerbaijan). As of March 2012, the company owned 0.43% of the plant. The type of activity of the company is not disclosed.

Note that the fifth entity - shareholder of Holcim (Azerbaijan) is Holcim Auslandbeteiligungs GmbH (3.61%). - 08B-