23rd Sep 2016 17:05
LONDON (Alliance News) - Chagala Group Ltd on Friday said its recently announced placing and open offer have been suspended in response to an application by TIPP Investments PCC.
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.
On Monday, however, Chagala said it had 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.
On Friday, Chagala said this application had been granted, and an order was issued requiring the suspension of the placing and open offer until October 27.
Chagala said there was "no reasonable basis for the order to be granted" and noted it would be appealing the order on the basis it was "not given an opportunity to put its full submissions to the court at the heating on the application".
A hearing on the appeal is expected to take place on or before September 30.
The company said it was currently seeking clarification from the court as to the implications of the order for the capital raise transaction, including the ability for it to extend the transaction.
Shares in Chagala were untraded on Friday, having last traded at USD1.50.
By Hannah Boland; [email protected]; @Hannaheboland
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