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Aerospace

Chagala Group surges as Asian Investment Management Services lifts holding

Asian Investment Management Services bought yesterday 1.256mln depositary interests

Chagala Group Limited (LON:CGLO), which provides services to the oil industry in Kazakhstan saw shares surge as it said Asian Investment Management Services Ltd now holds 11.31% of voting rights.

The latter bought yesterday 1.256mln depositary interests, or 6.02% of the total voting rights, at $1.55 each, and now holds around 2.36mln depository interests.

Earlier this month, the group warned it may not be able to meet an upcoming bond repayment due to the halt imposed on a planned placing and open offer.

It had intended to raise US$5.75mln in September, but this fund raise was blocked by a group of dissident shareholders.

As a result, the company said it would not be able to redeem US$6.7mln worth of Kazakh tenge-denominated bonds issued by subsidiary Caspi Limited on the maturity date of 1 December.

Chagala estimates it will be US$5.9mln short and needs to raise that as a minimum before the due date.

Shares added almost 24% to 1.55p in London.

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