ALMATY (Reuters) - Kazakh national oil company KazMunayGaz
Kazakhstan's national oil company is now offering $9.00 per global depository receipt, up from $7.88 per GDR in the original offer. KMG EP GDRs were trading at $7.80 by 0821 GMT on Wednesday.
KazMunayGaz made the offer as part of a broader proposal to amend KMG EP's charter and an agreement governing the relationship between the two companies.
KazMunayGaz also said it would amend its proposal so that KazMunayGaz will not have a veto over future nominations of KMG EP independent non-executive directors.
It said the amendments were made in response to feedback from minority investors in KMG EP.
KMG EP independent directors strongly opposed the original proposal made in June and urged minorities to vote against it at a meeting on Aug. 3.
Upstream-focused KMG EP is sitting on a cash pile of more than $3 billion, while its indebted parent narrowly averted default last year. Kazakhstan's central bank effectively printed the equivalent of $4 billion to bail it out.
Floated 10 years ago, KMG EP enjoys a high degree of autonomy thanks to the current relationship agreement and the presence of three powerful independent directors on its board.
KMG NC has a 58 percent stake in KMG EP. Minority shareholders, including Chinese sovereign wealth fund China Investment Corporation, and funds overseen by managers such as BlackRock (N:BLK), own 34 percent.