Waltbay LTD, a company registered in the Republic of the Marshall Islands, is interested in buying 100% of the shares of KazTransGas Tbilisi. Under the authority of the government, the signatory of which is the Prime Minister, the purchase of the shares of KazTransGas Tbilisi from KazTransGas will be done under the following conditions:
KazTransGas Ltd Tbilisi will be relieved of their obligations to any debts owed.
In addition, the company will be relieved of any debts or payments by KazTransGas and Intergas Finance BV. The government of Georgia will provide tax risk insurance for the company.
The government has requested the Ministry of Justice end negotiations with JSC KazTransGas regarding an arbitration dispute.
As a reminder, according to the information circulated several months ago, the Georgian Industrial Group (GIG) was interested in buying KazTransGas Tbilisi. At the time it was stated by GIG that they had already received the principle agreement to purchase the company. According to Forbes Kazakhstan, the transaction cost should have come to 40 million USD.
For reference, back in 2006 KazTransGas Tbilisi purchased gas distribution company “Tbilgazi” for 12,500, 000 USD. As of 2009, KazTransGas Tbilisi had accumulated 80 million GEL worth of debts, 68 million of which was owed to the Georgian Oil and Gas Corporation. In 2009, The National Energy and Water Supply Regulatory Commission appointed a special manager in KazTransGas-Tbilisi tasked with relieving the company of its debts.
KazTransGas has already filed a suit in the London Arbitration Court. KazTransGaz is demanding 180 million USD from the government.
