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UPDATE 2-Kaisun Energy says to buy CIC-invested Nobel
* Kaisun plans to issue new shares to fund acquisition
* CIC to retain portion of shareholding after acquisition
* Nobel Holdings has three oilfields in Russia (Amends second bullet point, clarifying that CIC will retain a portion of shareholdings after acquisition, adds detail in story)
By Sui-Lee Wee and Joseph Chaney
HONG KONG, Oct 15 (Reuters) - Kaisun Energy Group, a Hong Kong-based holding company, said on Thursday that it will buy out a Russian oilfield company, Nobel Holdings Investments, invested in by China Investment Corp (CIC) [CIC.UL].
Nobel Holdings is 45 percent owned by CIC, China's $298 billion sovereign wealth fund, 5 percent by Hong Kong-based Oriental Patron Financial Group and 50 percent by integrated petroleum company Nobel Oil.
The joint venture will be injected into Kaisun Energy when the deal is completed. CIC will retain a portion of its shareholding in the new entity, company executives said at a press conference in Hong Kong on Thursday.
Last month, the three joint venture partners signed an agreement under which CIC and Oriental Patron said they would provide $300 million to develop Nobel Oil's oilfields in Russia's Komi Republic, according to Interfax.
Kaisun said the two sides had signed a memorandum of understanding and that due diligence would start next week to determine the value of the deal.
The company would issue new shares to fund the acquisition, Joseph Chan, chairman of Kaisun Energy, told reporters.
Nobel Holdings owns all of the assets of Nobel Oil in Russia, comprising three producing oil fields with a combined production capacity of 150 million barrels of oil.
"This proposed acquisition is a golden opportunity to tap the international oil and gas industry," Chan said.
"Since our corporate repositioning, we have been embarking on a value-driven acquisition strategy to develop ourselves into an integrated resources company," he added.
The deal is expected to be completed in January 2010, Chan said.
CIC recently completed a series of commodities investments across the globe.
The Kaisun deal comes two weeks after CIC bought an 11 percent stake in the Kazakh state-controlled upstream company KazMunaiGas Exploration and Production (KMG EP). [ID:nPEK69341] (Editing by David Cowell)
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