Hms Hydraulic S Regulatory News (HMSG)

17 Apr 2014 15:08

Moscow, April 17, 2014

HMS Hydraulic Machines & Systems Group plc

(the “Company”, and together with its subsidiaries, the “HMS Group”)

Cyprus Court Discharges EUR 400 Million Freezing Order Against HMS Group and Its Directors

Moscow, Russia, April 17, 2014. HMS Hydraulic Machines & Systems Group Plc (the “Company”) (LSE: HMSG), the leading pump and compressor manufacturer as well as provider of flow control solutions and related services in Russia and the CIS, announces that the District Court of Nicosia, Cyprus yesterday discharged in full the interim order previously issued to freeze the property of the Company, its majority shareholder H.M.S. Technologies Limited, the Company’s directors, and BNY (Nominees) Limited (the “Order”).

As previously announced by the Company on 14 February 2014 (http://grouphms.com/press_center/detail.php?ID=4593) and further clarified on 18 February 2014 (http://grouphms.com/press_center/detail.php?ID=4596), the Company was served with the Order in Cyprus on 12 February 2014. The Order was obtained on an ex parte basis by Konstantin Grigorishin, and certain other plaintiffs, against Vladimir Matveevich Lukyanenko, his son Vladimir Vladimirovich Lukyanenko, and twelve other defendants, including the Company, certain of its shareholders and directors, and BNY (Nominees) Limited. Following prior written and oral submissions against the Order by the Company and several other defendants, the District Court of Nicosia yesterday discharged the Order in full, including in respect of the Company and its shareholders and directors.

The Company has previously indicated that Mr Grigorishin’s allegations, put forward in support of the interim Order, are the result of the ongoing corporate conflict between the co-owners of Ukraine’s Sumy Frunze NPO – Mr Grigorishin and his long-time business partner Igor Kuida, on the one hand, and Vladimir Vladimirovich Lukyanenko (who is also a non-executive member of the board of directors of the Company and one of its major shareholders), on the other hand. To read the Company’s understanding of the background to this dispute, please refer to the statement by Artem V. Molchanov, the CEO of the Company, made on February 15, 2014 (see http://grouphms.com/press_center/detail.php?ID=4595).

The Company reiterates unequivocally that there is no legal ground for the claims and allegations against the Company made by Mr Grigorishin and the other plaintiffs. In particular, the Company and its management have no involvement in the conflict between Mr Grigorishin and Mr Vladimir Vladimirovich Lukyanenko, and any suggestion to the contrary is simply false. The Company’s management is acting in compliance with law in the best interests of the Company and its shareholders.

The Company will continue to defend vigorously its position in these ongoing proceedings and will make further announcements regarding material developments in these proceedings.

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HMS Group is the leading pump and compressor manufacturer, as well as provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. HMS Group’s products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia’s core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.

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Disclaimer

The information contained herein has been prepared using information available to HMS Hydraulic Machines & Systems Group Plc (“HMS Group” or “HMS” or “Group” or “Company”) at the time of preparation of the presentation. External or other factors may have impacted on the business of HMS Group and the content of this presentation, since its preparation. In addition all relevant information about HMS Group may not be included in this presentation. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information.

Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve risk and uncertainty and HMS Group cautions that actual results may differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Report for a description of the major risk factors. This presentation should not be relied upon as a recommendation or forecast by HMS Group, which does not undertake an obligation to release any revision to these statements.

This presentation does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in HMS Group, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.

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