08-23-2005, 10:04 AM
ONGC Mittal loses PetroKaz bid to China
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->NEW DELHI: China has done it again. In what is becoming almost a pattern, Chinese national oil company â China National Petroleum Corporation (CNPC) â has outbid ONGC Mittal Energy (OME) in the race to acquire PetroKazakhstan.
Industry sources said CNPC outbid OME through a revised offer which not only increased the bid amount but also included a cash component in the offer. OME, it is learnt, had bid in the region of $3.9 bn to buy out PetroKazakhstan whereas CNPCâs bid stood at $3.6 bn.
However, the Chinese revised their bid with a higher offer of around $4.18 bn to acquire the Canadian firm operating in Kazakhstan. PetroKazakhstan made the sale announcement at 0730 London time, at least a couple of hours ahead of the scheduled filing by ONGC-Mittal combine at the London office of the merchant banker.
OME, it is learnt, had told the merchant bankers on Friday (August 19) that they were willing to better their bid if certain information on PetroKazakhstanâs operation was provided.
Sources close to the deal also said that OME had put forth certain conditions with regard to equity holdings by other partners. PetroKazakhstan, which is a leading downstream player, has been having legal problems with some of its equity partners.
Sources said that Luke Oil, a Russian player, may actually end up evoking its preemptive rights.
Calgary-based PetroKazakhstanâs board recommended that its shareholders accept the Chinese oil companyâs offer. The transaction is expected to close in October, the company statement said.
PetroKazakhstan is a vertically, integrated, international energy company. PetroKazakhstanâs proved and probable oil equivalent reserves were independently assessed at 550m barrels. The company, the largest integrated oil company, is also the market leader in refined products.<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->NEW DELHI: China has done it again. In what is becoming almost a pattern, Chinese national oil company â China National Petroleum Corporation (CNPC) â has outbid ONGC Mittal Energy (OME) in the race to acquire PetroKazakhstan.
Industry sources said CNPC outbid OME through a revised offer which not only increased the bid amount but also included a cash component in the offer. OME, it is learnt, had bid in the region of $3.9 bn to buy out PetroKazakhstan whereas CNPCâs bid stood at $3.6 bn.
However, the Chinese revised their bid with a higher offer of around $4.18 bn to acquire the Canadian firm operating in Kazakhstan. PetroKazakhstan made the sale announcement at 0730 London time, at least a couple of hours ahead of the scheduled filing by ONGC-Mittal combine at the London office of the merchant banker.
OME, it is learnt, had told the merchant bankers on Friday (August 19) that they were willing to better their bid if certain information on PetroKazakhstanâs operation was provided.
Sources close to the deal also said that OME had put forth certain conditions with regard to equity holdings by other partners. PetroKazakhstan, which is a leading downstream player, has been having legal problems with some of its equity partners.
Sources said that Luke Oil, a Russian player, may actually end up evoking its preemptive rights.
Calgary-based PetroKazakhstanâs board recommended that its shareholders accept the Chinese oil companyâs offer. The transaction is expected to close in October, the company statement said.
PetroKazakhstan is a vertically, integrated, international energy company. PetroKazakhstanâs proved and probable oil equivalent reserves were independently assessed at 550m barrels. The company, the largest integrated oil company, is also the market leader in refined products.<!--QuoteEnd--><!--QuoteEEnd-->