Shareholders of Canada-based PetroKazakhstan Inc. (PK) approved an offer by CNPCI, a wholly-owned subsidiary of China National Petroleum Corporation (CNPC), to acquire 100 percent of its assets for US$55 per share at a meeting early this morning, according to CNPC.
Investors holding a total of 46,896,714 shares took part in the meeting, held in Calgary, Alberta in Canada, and 99.04 percent of votes, in terms of shares, were cast in favor of the offer, said a CNPC official.
The closing of the acquisition is subject to other conditions, including approvals of Canadian courts and the Kazakhstani government, the official said.
If successful, the US$4.18 billion deal would be the biggest acquisition of a foreign company ever completed by a Chinese company, and it would help promote long term cooperation between the CNPC and the Kazakhstani petroleum industry, according to the official.
CNPC is China's largest oil producer and describes itself as a leading global integrated energy company engaged in both upstream and downstream operations, oil and gas field engineering and technical services, as well as petroleum materials and equipment manufacturing and supply.
The company announced on August 22 that it was participating in the acquisition bid for PK through CNPCI.
To clear the way for the trade, the CNPCI signed a memorandum of understanding (MOU) with KazMunaiGas, the state oil company of Kazakhstan, on Saturday.
According to the MOU, KazMunaiGas will obtain enough PK shares to have strategic control over the development of the country's mineral resources, together with equal rights for joint management over Shymkent refinery and its products.
Registered in Canada, PK is an integrated energy company with all of its assets in Kazakhstan and an annual production capacity of more than 7 million tons of crude oil. Its shares are traded on the Toronto, New York, London and Frankfurt exchanges.
(Xinhua News Agency October 19, 2005)
