Hong Kong listed Citic Resources Holdings is negotiating with Kazakhstan to sell a significant minority stake to the country, which is preparing to play a bigger role in Beijing’s “Belt and Road” trade and development initiative, according to two people with direct knowledge of the matter.
The complicated plan, which still has not been finalised, involves Citic Resources itself selling off a series of assets starting with an under-performing oilfield in northeastern China. It hopes eventually to sell other oilfields in China and various mining and coal assets, these people added.
Meanwhile a Kazakh government entity will inject energy assets into Citic Resources in return for a stake in the company, while powerful Citic Group itself will remain its largest shareholder.