Kazakhstan Kagazy PLC: announces the completion of a 25.0 million shares buyback

Kazakhstan Kagazy PLC  / Transaction in Own Shares*

12.07.2012 18:36

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Kazakhstan Kagazy announces that pursuant to a share buyback agreement (the
'Buyback') between the Company and SP Angel Corporate Finance LLP ('SP Angel'),
the Company agreed to repurchase 25.0 million shares for $3.6 cents per share
('The Agreement'). This repurchase equates to a 28% discount to the market price
of $5.0 cents per share prevailing on the day of the Agreement. At today's market
price, the buyback represents a 64% discount.

The Company shall cancel all 25.0 million shares repurchased in the Buyback.
Following the cancellation of 25.0 million shares, the total issued and
outstanding share capital of the Company will be reduced from 104.7 to 79.7
million shares.

The Company further announces that Tomas Mateos Werner, Chairman of the Company,
has initiated the sale of 1.1 million shares and gifted 4.9 million shares to the
Company's newly created Employee Benefit Trust ('EBT').  Following the Buyback
from SP Angel and the transfer to the EBT, Tomas Mateos Werner's shareholding will
slightly increase from 28.6% to 29.9%.

Phoenicia Capital LLC, the management arm of Phoenician Offshore Fund Ltd, a New
York based value investing Fund represented on the board by John Khabbaz,
Non-Executive Director of the Company, will see their shareholding rise from 20.9%
to 27.5%.

Creation of an Employee Benefit Trust 
 
The Company's Employee Benefit Trust was formed on 5 July 2012 for the benefit of
employees of the Company and its subsidiaries and to align the interests of
employees with those of shareholders.  Following the transfer of the 4.9 million
shares, the Company's Employee Benefit Trust will have a 6.1% interest in the
share capital of the Company.

For additional information, please visit www.kazakhstankagazy.com or contact:

Sadyr Shaguzhaev
IR department
Tel.: +7-727-341-0200



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Language:           English
Company:            Kazakhstan Kagazy PLC
                    33-37 Athol Street
                    IM1 1LB Douglas
                    Isle of Man
Phone:              +7-727-244-87-87
Fax:                +7-727-244-87-82
E-mail:             ir@kagazy.kz
Internet:           www.kazakhstankagazy.com
ISIN:               US48667M2035
Listed:             London
Category Code:      POS
LSE Ticker:         KAG
Sequence Number:    1124
Time of Receipt:    Jul 12, 2012 18:36:30
 
End of Announcement                       EquityStory.RS, LLC News-Service
 
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