China Investment Corporation Buys Stake in Kazakh Gas Company for $939 Million
According to Bloomberg, “China’s sovereign wealth fund bought a stake in the London-traded unit of Kazakhstan’s state-run energy company, taking its spending on resources to at least $3.69 billion this month.
China Investment Corp., which holds almost $300 billion, bought an 11 percent stake in Astana, Kazakhstan-based JSC KazMunaiGas Exploration Production for about $939 million by purchasing global depositary receipts, according to a statement dated today on the Beijing-based fund’s Web site.
China is hunting for resources from Canada to Nigeria to support expansion in the world’s fastest-growing major economy. Today’s deal follows a combined $2.75 billion spent by the fund on Indonesia’s PT Bumi Resources and Noble Group Ltd. last week.
‘The reason why China is investing in assets like this is simple: it needs more oil and gas,’ said Shi Yan, an analyst at UOB-Kay Hian Ltd. in Shanghai. ‘China also has huge financial reserves and with commodity prices still down from highs last year, it’s still a good time to buy.'”
read more: Bloomberg
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