Clifford Chance

Clifford Chance advises Kunlun Energy on US$1.35 billion placement

Leading international law firm Clifford Chance has advised Kunlun Energy Company Limited on its top-up placement of shares raising US$1.35 billion.

Deutsche Bank, CICC, Citi, Merrill Lynch, Morgan Stanley and UBS acted as placing agents with 800,000,000 shares sold at HK$13.10 per share. Proceeds from the placement will be used by Kunlun to further develop its LNG business through the implementation of its "Gas in Substitution of Oil" strategy. The placing is expected to close on 10 April 2012.

This top-up placement is the second largest follow-on offering since Minsheng's US$1.44 billion H share placing two weeks ago, on which Clifford Chance also advised the issuer.

"We're delighted to have worked with Kunlun Energy on this transaction," said Corporate partner Amy Lo, who led the team on this deal. "This investment is a reflection of aligning a firm's strategy to meet with one of the key themes outlined in China's latest Five Year plan to 'Greening of the economy' - a move towards building a resource-conscious and environmentally friendly society."

Kunlun Energy focuses on the exploration, development and production of crude oil and natural gas. It is listed on the Hong Kong Stock Exchange and is majority-owned by PetroChina Company Limited, China's largest gas producer by capacity.

Amy was supported by partner Virginia Lee and senior associate Fiona Lee. Consultant Tom Kollar also assisted advising on US securities law.