A Chinese and Kazakh joint venture purchase of a Kazakh oil
company has overcome currency concerns, being conducted on a
single day in an open trade. Its success should boost the
confidence of Chinese acquirers in the country.
A joint venture between China National Petroleum and JSC
National Company KazMunayGas (KMG) purchased JSC
Mangistaumunaigaz (MMG) and its holding company, Central Asia
Petroleum, for approximately $3.3 billion through an open trade
on the Kazakhstan Stock Exchange (Kase).
The deal was most notable for being conducted on a single
day over Kase. Because of tax rules put in place to encourage
activity on the countrys exchange, the parties involved
structured definitive agreements to ensure...