Kazakhstan, Hong Kong Billionaires Li, Cheng, Yung Plan Fund, Premier Says
Karim Massimov, Kazakhstan's Prime Minister
Dale de la Rey/Bloomberg
Karim Massimov, Kazakhstan's prime minister, speaks during an interview in Hong Kong, China, on Thursday, Oct. 14, 2010.
Karim Massimov, Kazakhstan's prime minister, speaks during an interview in Hong Kong, China, on Thursday, Oct. 14, 2010. Photographer: Dale de la Rey/Bloomberg
Kazakhstan has joined Hong Kong billionaires Li Ka-shing, Larry Yung and Cheng Yu Tung to form a $400 million private equity fund that will help Kazakh companies list in the city, Prime Minister Karim Massimov said.
Kazyna Capital Management JSC, a unit of the country’s sovereign wealth fund, will initially contribute $100 million and four Hong Kong partners, including Li’s Cheung Kong (Holdings) Ltd., will provide $300 million, the prime minister said in an interview yesterday.
“In Hong Kong, guanxi is very, very important,” he said. “We have trust in them, they are very serious partners, and they have trust in the government of Kazakhstan.” “Guanxi” is a Chinese term that refers to personal relationships.
Kazakhstan, the largest energy producer in Central Asia, has the world’s 11th-biggest proven oil reserves and is becoming an increasingly important source of natural resources for China, as well as Russia.
Getting the nation’s supply of minerals, including coal, iron ore, nickel, gold and uranium, to market requires billions of dollars of investment in infrastructure, Massimov said.
“This is just initial; $400 million for these type of businesses is peanuts,” he said.
Yung, former chairman of Citic Pacific Ltd., will invest about $100 million through privately held Enterprise Holdings Ltd., according to Gordon To, who will manage the investment on Enterprise’s behalf.
Cheng, chairman of Hong Kong-based real estate investor New World Development Co., will invest an undisclosed amount through his closely held Chow Tai Fook Enterprises Ltd., To said. He also declined to say how much Li’s Cheung Kong and the fourth participant, investor Dominic Lau, will contribute.
Wendy Tong Barnes, a spokeswoman for Cheung Kong, didn’t immediately return a call yesterday seeking comment.
To contact the reporter responsible for this story: Frederik Balfour at fbalfour@bloomberg.net
To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net
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