Chaparral stockholders approve merger
30 September 2006 - 2:58AM
PR Newswire (US)
WHITE PLAINS, NY, Sept. 29 /PRNewswire-FirstCall/ -- Stockholders
of Chaparral Resources, Inc. (OTCBB: CHAR) (the "Company") voted
today at a special meeting in London, England to effect a merger
with a wholly owned subsidiary of LUKOIL Overseas Holding Ltd.
("LUKOIL"). The proposed merger was approved by more than 70
percent of the votes eligible to be cast, and the closing of the
merger was effective upon the acceptance of Delaware corporate
filings on the same day. "We appreciate that Chaparral's
stockholders recognized the benefits of the proposed merger and
look forward to the successful integration of both companies," said
Boris Zilbermints, Regional Director of LUKOIL Overseas Holding
Limited in Kazakhstan and former Chief Executive Officer of
Chaparral. The approved merger agreement among the Company, LUKOIL
and NRL Acquisition Corp., which was executed on March 13, 2006,
provides that a wholly owned subsidiary of LUKOIL, NRL Acquisition
Corp., will merge with and into the Company and each issued and
outstanding share of the Company's common stock (other than shares
held by LUKOIL or its affiliates and any shares with respect to
which appraisal rights have been properly perfected under Delaware
law) will be converted into the right to receive $5.80 in cash,
without interest and less any applicable withholding taxes. With
the close of the transaction, the Company ceased to be a publicly
traded company and became an indirect wholly owned subsidiary of
LUKOIL. Petrie Parkman & Co. served as the financial advisor to
the Special Committee of the Board of Directors of the Company for
this transaction, and Baker Botts L.L.P. were the legal advisors to
the Special Committee of the Board of Directors of the Company.
Pursuant to the merger agreement, the officers and directors of NRL
Acquisition Corp. will become the new officers and directors of the
Company. All of the existing directors and officers of the Company,
including Peter Dilling and Alan Berlin as independent directors,
and Charles Talbot as Chief Financial Officer have resigned.
Holders of certificates representing shares of the Company's common
stock will be sent instructions regarding the surrender of those
certificates to receive payment for those shares. It is anticipated
that these instructions will be mailed within one week. Holders of
common stock in "street name" - that is, without a stock
certificate - should receive payment for their shares automatically
from their broker or financial institution. It is expected that
this process will begin within three business days. About Chaparral
Resources, Inc. and OAO LUKOIL: Chaparral Resources, Inc. is an oil
and gas development and production company. The Company's only
operating asset is its participation in the development of the
Karakuduk Field, in the Republic of Kazakhstan, through KKM, which
is the operating company. The Company has directly and indirectly a
60% ownership interest in KKM with the other 40% ownership interest
being held by Caspian Investments Resources Limited ("Caspian").
Caspian, an indirect subsidiary of OAO LUKOIL ("LUKOIL"), holds a
majority interest in the Company. LUKOIL is one of the world's
leading vertically integrated oil & gas companies. The main
activities of LUKOIL are exploration and production of oil &
gas, production of petroleum products and petrochemicals, and
marketing of these outputs. Most of the LUKOIL's exploration and
production activity is located in Russia, and its main resource
base is in Western Siberia and most of the production is sold on
the international market. LUKOIL petroleum products are sold in
Russia, Eastern Europe, CIS countries and the USA. LUKOIL is the
second largest private oil Company worldwide by proven hydrocarbon
reserves. It has around 1.3% of global oil reserves and 2.1% of
global oil production. LUKOIL dominates the Russian energy sector,
with 18% of total Russian oil production and 18% of total Russian
oil refining. DATASOURCE: Chaparral Resources, Inc. CONTACT: please
contact Boris Zilbermints, Tel: +7 3172 591 100, Regional Director,
Kazakhstan, LUKOIL Overseas Holding Limited; Investor Relations:
Jan Moir, Vice President, CHF Investor Relations, Tel: (416)
868-1079, Fax: (416) 868-6198,
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