CIC takes stake in KMG as China seeks to take advantage of commodity slump
CHINESE wealth fund CIC yesterday bought a stake in KazMunaiGas Exploration Production (KMG), the Kazakh oil and gas company, which is listed on the Kazakhstan Stock Exchange, and has its GDRs listed on the London Stock Exchange.
State-owned CIC, which has over $300bn (£189bn) under management, paid $939m for an 11 per cent stake in KMG’s Global Depositary arm.
Over the last year CIC has shifted its focus to industrial firms, especially those in the energy and commodities sector.
State-owned firms in China have been encouraged to buy into mining and oil assets overseas as commodity prices drop in the downturn.
CIC has also bought a 15 per cent stake in Noble, the commodities trader, for $850m.
But the wealth fund prefers to hold minority stakes, staying away from full takeovers.
China’s top oil and gas firm CNPC had 16 projects in central Asia and Russia and top refiner Sinopec Group had eight, as of the end of 2007, according to a report by CNPC.