Daily Business News Mongolia

Coca-Cola Opens US$22 million New Plant in Mongolia

www.marketwatch.com writes that,

Sales of Coca-Cola Products in Mongolia increase 16 times in 6 years

ULAANBAATAR, Mongolia, Aug 24, 2008 (BUSINESS WIRE) — A US$22 million green field Coca-Cola bottling plant was officially opened in Ulaanbaatar today by Muhtar Kent, President and CEO of The Coca-Cola Company and Odjargal Jambaljamts, Chairman & CEO, MCS Group. This new plant will be the second and largest Coca-Cola plant in Mongolia. The first Coca-Cola plant was built in 2001 by MCS Coca-Cola, the exclusive bottler of Coca-Cola products in the market.

“I’m delighted to see MCS Coca-Cola continue to exceed all projections in sales volume and profit,” said Mr. Kent. “By posting an average annual volume growth of nearly 50% year on year, the Mongolian business has established itself as one of the strongest performing operations globally. I am also delighted to see that the leadership of MCS Coca-Cola has continuously demonstrated its commitment to invest in the development of its people and manufacturing facilities, critical to ensure continued future growth of the Coca-Cola business in Mongolia.” (more…)

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Take-Over Bid Circular and Directors’ Circular Mailed in Respect of Cdn$5.00 Offer Per Share for QGX Ltd

www.marketwire.com writes that,

WATERDOWN, ONTARIO–(Marketwire - Aug. 11, 2008) - QGX Ltd. (TSX:QGX) (”QGX”) and Mongolia Holdings Corp. (the “Offeror”), an indirect subsidiary of Kerry Holdings Limited (”Kerry”), are pleased to announce that the Offeror’s formal bid circular in respect of the offer to acquire the outstanding common shares of QGX at a price of Cdn$5.00 in cash per share has been mailed to QGX’s registered shareholders. QGX has also mailed its directors’ circular recommending that QGX’s shareholders accept the offer and tender their shares to the offer.

On July 22, 2008, QGX announced the Offeror’s intention to make a supported take-over bid for QGX, valuing the total common share capital of QGX at approximately Cdn$259 million. The offer represents a 32% premium to QGX’s volume weighted average closing price on the Toronto Stock Exchange for the 20 trading days ended July 21, 2008 and a premium of 52% to the last closing price of the QGX common shares before QGX announced its was exploring strategic alternatives on February 12, 2008. (more…)

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EBRD’s first syndicated loan in Mongolia

www.maximnews.com reports that,

KATHY SHANDLING:   07/08/2008 (MaximsNews Network)

UNITED NATIONS - /  MaximsNews Network / 7 August 2008 –  The EBRD is making its first syndicated loan in Mongolia. The development bank is providing a US$13 million credit to MCS Coca-Cola LLC, a privately-owned local soft-drinks producer, in order to help the company to expand its production, broaden its product range, and most importantly, improve its wastewater treatment and recycling processes.

The EBRD is providing US$7 million with the remaining US$6 million to be raised through syndication under the EBRD’s A/B loan structure.

MCS will use the funds to construct a greenfield bottling plant which will increase MCS’ production capacity. The EBRD funds will also be applied towards the financing of a new wastewater treatment and recycling plant that will also be used by a neighboring MCS-APB brewery. (more…)

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Kerry Holdings and MCS Holding to Acquire QGX Ltd. for Cdn$5.00 Per Share

marketwire.com writes that,

WATERDOWN, ONTARIO–(Marketwire - July 22, 2008) - QGX Ltd. (TSX:QGX) (”QGX” or the “Company”) is pleased to announce that it has entered into a definitive support agreement with Kerry Holdings Limited (”Kerry”), MCS Holding LLC (”MCS”) and Mongolia Holdings Corp. (the “Offeror”) pursuant to which the Offeror will offer (the “Offer”) to acquire all of the issued and outstanding common shares on a fully diluted basis (the “Shares”) of QGX for Cdn$5.00 per Share in cash. The Offer values QGX at approximately Cdn$259 million representing a 32% premium based on the volume weighted average closing price of QGX’s common shares on the TSX for the 20 previous days ending July 21, 2008 and a premium of 52% to the last close before the Company announced it was exploring strategic alternatives on February 12, 2008.

The Board of Directors of QGX, upon the unanimous recommendation of a special committee of its directors, has unanimously approved entering into the support agreement and recommends that shareholders tender to the Offer. Additionally, QGX’s Board has received an opinion from Merrill Lynch Canada Inc., that the consideration being offered is fair, from a financial point of view, to the shareholders of QGX. Shareholders of QGX, including the directors and officers of QGX, representing approximately 42% of the issued and outstanding common shares of QGX on a fully diluted basis, have agreed to tender their shares, subject to certain exceptions and have entered into lock-up agreements evidencing such commitment. (more…)

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Joint venture bids C$259 mln for Canada miner QGX

Reuters reports that,

TORONTO, July 22 (Reuters) - Private Asian holding companies Kerry Holdings and MCS Holding are teaming up to buy Canadian-based metals explorer QGX Ltd (QGX.TO: Quote, Profile, Research) for C$259 million ($256 million), the three firms said on Tuesday.

The friendly cash offer values QGX at C$5 a share, an 11 percent premium to the miner’s closing price on Monday.

QGX’s board has unanimously recommended the offer and shareholders representing about 42 percent of the shares have agreed to tender to the bid, the company said. (more…)

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Mongolian Businessmen Started to help Sichuan

As of May 21, 71 thousand people lost life and over 220 injured due to earthquake in Sichuan, China. Also material loss is estimated USD 20 billion. Over 14 thousand companies suffered loss of USD 9.5 billion and 1400 workers lost their life in Sichuan and neighbor provinces. Mongolian people didn’t sit back at this very hard and tragic time. The Government of Mongolia sent USD 50 thousand to China as aid. Among business organizations, MCS pioneered in giving aid hands to China. Representatives of MCS group handed over MNT 10 million to the Embassy of China for the Chinese people, hit by disasters. Staff of the Embassy expressed their gratitude for warmth and sincerity of the MCS staff.

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J.Odjargal: I Told the Government We Had No Way To Go Back

The Government of Mongolia is negotiating with Energy Resources consortium, which owns 100 percent Tavan tolgoi deposit license however it’s been informed recently that the Government is taking the deposit 100 percent into state ownership, leaving nothing for national investors. Therefore, we clarified some information from J.Odjargal, Chairman of the Governing Council of the consortium.

In which phase is Tavan tolgoi agreement now?

It is proper to mention that the agreement commenced in a business atmosphere and with will of mutual understanding. The agreement negotiation lasted for summer and fall with the Cabinet of M.Enkhbold and for winter with S.Bayar’s Cabinet in 2007. In terms of period, the negotiation lasted for 4 seasons and is still goes on. Of course it did not undergo a smooth and direct path, for example about 10 meetings had been held in framework of negotiation with S.Bayar’s Cabinet. We assumed that the negotiation would be held in a mutually beneficial way that highlighted mutual understanding to bring the project into economic turnover. But recently not so clear atmosphere dominate. (more…)

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Top 100 National Locomotives

The Government of Mongolia, along with National Chamber of Commerce and Industry selected Top 100 entities of the year 2007. According to the main criterion of the selection-tax payment, Mongolia-Russia joint enterprise “Erdenet” ranked first. Copper price in the world market has gone up. Its success could be drawn back by saying it is the public enterprise of which 51 percent is owned by Mongolia and 49 percent by Russia, though there is no way other than respecting efforts and contribution of the staff of this giant enterprise which paid MNT127 billion for entities tax, recording the sales of MNT820 billion in 2006. MCS followed the giant for the second time. Since Erdenet is a state enterprise, it means MCS led the private sector. It is said that through high level of tax payment, the company shows how transparent it is. MCS group paid tax and fee of MNT 13.5 bln in 2004, MNT23.1 bln in 2005, MNT32.5 bln in 2006 and MNT47.8 bln in 2007. Out of MNT 47.8 bln, MNT 24.7 bln go for excise tax and MNT 23.1 bln for other taxes and bills. It demonstrates that the group has dug not only into food industry but also into other businesses. MCS has paid MNT 116.9 bln taxes for last 4 years. If we assume over MNT2 billion is necessary for constructing a secondary school complex, this group alone paid taxes equal to building such 2 or 3 complexes. Following these two enterprises, major national investors such as Mobicom, Petrovis, Mongolian Telecommunication, Magnai trade, Tsairt mineral, Boroo Gold, NIC and Just rank in the first ten. (more…)

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