Shares of Citic Resources Holdings, the listed resources unit of China International Trust & Investment Corp (Citic Group), jumped 14.95 per cent during trade yesterday after the company announced US$1.15 billion worth of oil and gas asset acquisitions, mostly in Kazakhstan.
The shares, which have surged 136.7 per cent in the past six months, peaked at HK$4.23 yesterday, before ending up 13.86 per cent at a record high close of HK$4.19, from HK$3.68 on April 30. Trading had been suspended for a week pending an announcement of the deals.
The company is marketing a seven-year bond issue of up to US$1 billion to fund the acquisitions.
Citic Resources has agreed to buy from its parent a 47.3 per cent stake in Kazakhstan's state oil and gas firm Karazhanbasmunai and related oilfield engineering and logistics services assets for US$1 billion.
Citic Group bought 94.6 per cent of Karazhanbasmunai and related assets from shareholders of Canada-based Nations Energy in December last year for US$1.91 billion. It subsequently sold half of its stake to Kazakhstan state oil and gas firm KazMunaiGas to gain Kazakhstan government approval for the deal.
Karazhanbasmunai, with 363.8 million barrels of oil equivalent in proved oil and gas reserves, will provide a substantial boost to Citic Resources' reserves, which totalled 59 million boe at the end of last year.
Citic Resources said it also acquired for US$150 million from British Virgin Island-based Far Great Investments the right to buy 90 per cent of the Hainan-Yuedong exploration block in Liaohe, Liaoning province.