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US$4.18 billion bid for oil firm accepted
By Wang Ying (China Daily)
Updated: 2005-08-23 06:02
The nation's largest oil and gas producer, China National Petroleum Corp (CNPC), yesterday reached an initial agreement with PetroKazakhstan Inc to buy the Canadian-registered company for US$4.18 billion, topping the bid from an Indian rival.
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| Tank wagons stand in line next to sulphur stored at Tengiz oil and gas refinery plant in western Kazakhstan in this file photo. PetroKazakhstan Inc, a Canadian oil company operating in central Asia, said on Monday it had agreed to be bought by Chinese energy company CNPC International Ltd for $4.18 billion. [Reuters] |
"CNPC, through its wholly owned subsidiary China National Petroleum Corporation International (CNPCI), has participated in acquiring PetroKazakhstan (PK)," the Beijing-based oil giant said in a statement yesterday.
CNPC, the State-owned parent of Hong Kong-listed PetroChina, and PK have entered into an Arrangement Agreement whereby the Chinese oil firm will pay US$55 a share, or 21 per cent more than its closing share price on Friday, PetroKazakhstan said in a statement yesterday.
India's Oil & Natural Gas Corp also bid for the company.
The board of directors of PetroKazakhstan recommended its shareholders accept CNPC's offer and agreed on a US$125 million break-up fee.
The deal is expected to close in October, said the Calgary-based oil company, which produces 7 million tons of crude oil annually.
CNPC is considering a proposal in which PetroKazakhstan shareholders could get discounted shares in a spin-off of its newly formed venture with Hong Kong-listed PetroChina, Newco, PetroKazakhstan said.
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