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| China-Japan-Koreas |
| China bids on Canadian/Kazakstan oil company |
| 2005-08-23 |
| EFL Canadian-based oil company PetroKazakhstan Inc. has struck a $4.18-billion takeover deal with a subsidiary of China National Petroleum Corp., a major acquisition intended to boost China's energy supplies. CNPC International Ltd. would pay $55 US per share for the Canadian firm, the companies said Monday. In Canadian dollars, the offer is worth PetroKazakhstan, which has its headquarters in Calgary but operates solely in the central Asian country of Kazakhstan, announced in late June it had been approached by several parties regarding a potential acquisition or merger. PetroKazakhstan, formerly known as Hurricane Hydrocarbons, is one of the largest foreign energy companies operating in Kazakhstan and has been there for the last eight years. The total takeover offer represents a premium of 24.4 per cent based on the average closing price of the firm's common shares. The takeover agreement has been reviewed by a special committee of the board of directors of PetroKazakhstan and has been approved by the boards of directors of both PetroKazakhstan and CNPCI, with PetroKazakhstan's board recommending that its shareholders accept CNPCI's offer. The transaction will be subject to approval by two-thirds of the votes cast by PetroKazakhstan shareholders at a meeting expected to be held in October. Closing is subject to certain other conditions, including court approvals. The agreement prohibits PetroKazakhstan from soliciting any other acquisition proposal but allows its board to recommend any superior proposal with a break fee $125 million US. CNPCI would have the right to match any such superior proposal. PetroKazakhstan has had a variety of high-profile troubles this year which played havoc with its share price. In late April, a ruling from Kazakh regulators forced the company to immediately stop flaring gas - a move that slashed second-quarter production by 30 per cent - to 106,000 barrels per day from 151,000 barrels in the same period last year. Along with the flaring issue, the company has been publicly scrapping with Russian oil giant Lukoil over a joint venture called Turgai Petroleum. Both sides have filed multi-million dollar claims against each other. The takeover of PetroKazakhstan would add closer economic ties to the growing strategic co-operation between China and Kazakhstan, which is expected to become one of the world's leading oil producers over the next two decades. China is trying to increase its role in Central Asia, spurred in part by unease at the presence of U.S. military forces in the former Soviet region that borders Afghanistan. The two governments already are partners in the Shanghai Cooperation Organization - a six-country security group led by Beijing and Moscow that is meant to combat |
| Posted by:Jackal |
| #2 The Chinese are already feeling the teeth of real world economics. I suspect we will see internal disorder first before the Chinese can make trouble beyond Taiwan. Its the cycle of consolidation, empire, dissolution, many kingdoms that China was followed for thousands of years. In-fighting for turf has already begun. |
| Posted by: Thrinegum Sleager2196 2005-08-23 16:24 |
| #1 I'm beginning to think that the coming war with China won't be over Taiwan or NKorea... but over oil. Players: India, US, the West, Russia, China, Indonesia. |
| Posted by: Anon4021 2005-08-23 15:00 |