Chagala Group Ltd and its subsidiaries are engaged in ownership and management of hotels, serviced apartments, office accommodations and other commercial properties, restaurant operations and construction of commercial real estates in western Kazakhstan. The Company provides residential and business accommodation and associated catering, leisure, transport, warehousing and logistics support to all companies involved in extracting oil and gas in Kazakhstan�s Caspian region. It is active in three segments: room and rent operations, food and beverages operations and Other. As of December 31, 2011, the Company had investment in its subsidiaries, including Chagala Cooperatief UA, Chagala International Holding BV, Bayan Limited LLP, Caspi Limited LLP, Aktau Development Company LLP, Chagala Management LLP, Chagala Zera Malls LLP and Chafala Aksai LLP. On August 11, 2011, Bautino Development Company liquidated by merger with Aktau Development Company, a subsidiary of the Company.