Ilim Pulp, Continental Management and Promstroibank SPB resolved the conflict over Ilim Pulp assets
Nov 04, 2004. Ilim Pulp, Continental Management and Promstroibank SPB resolved the conflict over Ilim Pulp assets, Kommersant and Vedomosti newspapers announced.

Ilim Pulp, Continental Management and Promstroibank SPB resolved the conflict over Ilim Pulp assets

Nov 04, 2004. /Lesprom Network/. Ilim Pulp, Continental Management and Promstroibank SPB resolved the conflict over Ilim Pulp assets, Kommersant and Vedomosti newspapers announced.

The decision on the resolution of the conflict is due to be announced one of these days. According to the newspaper reports, the parties signed an agreement on October, 29. In line with the agreement, Promstroibank transfers 20% of Arkhangelsky shares to Continental Management, cedes its stake in Continental Managemens and receives 25% of Ilim Pulp shares with the possibility to increase the stake to 50%. Owner of Continental Management Oleg Deripaska stopped the conflict with Ilim Pulp and will now deal with Arkhangelsky pulp and paper enterprise only, Promstroibank SPB co-owner will co-own Ilim Pulp with state-owned Vneshtorgbank.

According to Ilim Pulp information policy director Svyatoslav Bychkov the agreement reached is not a trilateral one. Continental Management signed an agreement with Promstroibank SPB, while Promstroibank SPB signed an agreement with Ilim Pulp. However the agreements reached are a distinct evidence of the resolution of the corporate conflict that had been launched in autumn 2001.

Ilim Pulp shareholders signed an agreement to sell 25% of shares to PSB (the stakes of the current Ilin Pulp shareholders will decrease proportionally) as well as to provide PSB with an option to increase the owned stake to 50%. According to Kommersant, PSB intends to invest in Ilim Pulp together with its partner Vneshtorgbank that is interested in investing in the timber sector. Vneshtorgbank declined to comment on the statement.

Meanwhile Vladimir Kogan owning PSB will leave the co-project with Continental Management. According to Kommersant, Vladimir Kogan will also resolve all the conflicts that have grown around Ilim Pulp during the recent years. This means that Continental Management will not voice any claims against Ilim Pulp.

PSB will sell 20% of Arkhangelsky shares to Continental Management, CM will then own a total of 33% of Arkhangelsky shares. CM will struggle with Titan group of companies and foreign investors to acquire another 64% of Arkhangelsky shares. Previously Continental Management questioned the legitimacy of Arkhangelsky consolidation by Austrian Pulp Mill Holdings and negotiated the sale of the enterprise with Austrian and German investors.

The only significant result of the 4-years ‘forest war’, according to Kommersant, is the return of Vladimir Kogan who sold his 20% stake in 1999 as Ilim Pulp shareholder. Oleg Deripaska, just like earlier in 2000, will have to start the creation of a timber industry holding over again. According to Kommersant, a team of managers headed by CEO Dmitri Korobko quit Continental Management, therefore the company will have to proceed with its war for Arkhangelsky with new management.

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