Chinese oil investment tackles Kazakh currency fears

Author: | Published: 17 Dec 2009

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 country’s exchange, the parties involved structured definitive agreements to ensure...