Ever since Kustocem has become an investor in Coteccons back in 2012, we are one of the first foreign investors in Coteccons. We have closely worked with, and supported, the Company, the BOD, and the BOM, despite Coteccons’ recent declining financial performance.
However, the rationale behind and the benefits of M&A strategy between Coteccons and Ricons are unclear.
The proposed merger with Ricons would not bring additional technical or operational capabilities that our company does not already have. Kustocem believes that Coteccons shareholders will benefit from the management focusing the company’s resources on developing our own platform instead of going down the M&A path.
Using the company’s shares to pay for M&A transactions does not make sense until the financial performance of Coteccons improves and the share price reaches the level that it deserves.
Therefore, Kustocem must inform the AGM that, at this time, we cannot in good faith vote for the merger or delegate the power to approve the merger to the BOD.
We hope all Coteccons shareholders would understand our position and respectfully request the BOD and the BOM to cease all works related to the proposed merger with Ricons and to focus on steering our company back on the path of success and strong performance.
We believe that Coteccons has a great team of hard-working professionals that is fully capable of protecting and strengthening its market leader position, growth rates and margins.KUSTOCEM-POSITION-STATEMENT-ON-THE-PROPOSED-MERGER-WITH-RICONS