JPMorgan - KASE

(b) On June 30, 2000, $30.2 million, comprised of $15.0 million of principal, a $10.0 million
prepayment of principal and $5.2 million in interest;
(c)
On September 30, 2000, $54.2 million, comprised of $19.0 million of principal, a $31.0 million
prepayment of principal and $4.2 million in interest;
(d) On December 31, 2000, $32.2 million, comprised of $19.0 million of principal, an $11.0
million prepayment of principal and $2.2 million in interest;
(e)
(f)
On March 31, 2001, $1 million in interest;
On June 21, 2001, $24.7 million comprised of $23.8 million of principal and $0.9 million in
interest. The US and Canadian note holders were fully repaid as of this date.
In addition, creditors with undisputed claims amounting to $3.3 million plus interest have been
paid in full.
3 Acquisition of OJSC Shymkentnefteorgsyntez (“ShNOS”)
On March 31, 2000 the Corporation completed the ShNOS acquisition, acquiring 88.36% of the
issued and outstanding common shares of ShNOS, an open joint stock company in Kazakhstan
listed on the Kazakhstan Stock Exchange, for initial consideration of $118 million. Subsequently,
the Corporation acquired a further 3.1% of the issued common shares of ShNOS for further cash
consideration of $3.8 million. During the year ended December 31, 2001, pursuant to an
agreement with the vendor of ShNOS, the Corporation cancelled 153,657 of the shares issued for
the acquisition of ShNOS for $0.4 million. ShNOS is the owner and operator of an oil refinery
based in Shymkent, located in South Central Kazakhstan through which the Corporation
processes crude oil.
The total consideration for the acquisition consists of:
Cashconsideration ............................................................................... 48,846
Issuance of 19,430,543 common shares of the Corporation from treasury (Note 13) ....................... 57,082
Cancellation of 153,657 shares (Note 13) ............................................................ (440)
Issuance of 4,067,381 special warrants convertible into 4,067,381 common shares with no additional
payment, on the same basis as the special warrants (Note 13) ........................................ 11,949
Issuance of corresponding convertible securities in quantities, which allow the holder to exercise such
corresponding options and warrants which Hurricane, has outstanding, such that the holder may
maintain its percentage ownership of the shares outstanding. The corresponding convertible securities
arerecordedattheirfairmarketvalue(Note13)................................................... 2,910
Costsofcombination ............................................................................. 1,012
121,359
The acquisition of ShNOS was accounted for under the purchase method with an effective date
of March 31, 2000. The results of the operations of the acquired business are included in the
accompanying financial statements since the date of acquisition.
Hurricane’s total purchase price of $121.4 million was assigned to the net assets acquired as
follows:
Working capital, including cash of $12.6 million ..................................................... 46,176
Fixedassets ..................................................................................... 110,099
Minority interest ................................................................................. (13,744)
Future income tax liability ........................................................................ (21,172)
Aggregate consideration ......................................................................... 121,359
Following the acquisition of ShNOS, the Corporation has made, as required by Kazakhstan law, a
follow up offer to the minority shareholders of ShNOS on the same basis as the acquisition to
acquire the remaining outstanding common and preferred shares.
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