KazTransGas-Tbilisi, a local subsidiary of KazTransGas has been acquired by Georgian investment group Kala Capital. Though the details of the transaction have not been disclosed, KazTransGas paid USD 12.5 million for Tbilgas in 2006.
The company decided to sell the subsidiary as part of an overall strategy of reducing its presence in Georgia following last summer’s conflict with Russia.
Established in 2008, Kala Capital plans to invest heavily in the region, making the deal for KazTransGas-Tbilisi one of their initial investments.
KazTransGas
KazTransGas (KTG) is a joint stock company formed in 2000 by the government of the Republic of Kazakhstan, as a means to centralize and manage the oil and gas industries in the country. Headquartered in Astana Kazakhstan, KTG also maintains offices in Moscow, Kyrgyzstan, Uzbekistan, Turkmenistan and Ukraine. The backbone of the company’s business is the local transport, delivery, and storage of natural gas. However, they are also active in regional gas acquisition and transportation, gas processing, and the development and sale of electricity and thermal energy.
Kala Capital (www.kalacapital.com)
Kala Capital was established to invest in domestic oil extraction, hydroelectric and wind power and general energy research.
Based in Tbilisi, Kala Capital has purchased 78 hectares of real estate in the city for construction of a planned community called “Arsenal City.” The community will include a five-star hotel as well as convention facilities and commercial space.
The company also opened its first Progress Bank location in 2008, with plans to expand nationwide to meet the needs of corporate, private and retail clients.
With the Kala Foundation, the firm has donated time and money to the needs of children throughout Georgia.
29/01/2009
Central & Eastern Europe, Energy and Utilities, Investment, Kazakhstan, Private Equity News