KIC, CIC Consider Chesapeake Energy Stakes

SEOUL (Reuters) – A consortium by Korea Investment Corp (KIC) and China Investment Corp (CIC) is considering buying stakes in Chesapeake Energy Co (CHK.N), local media said on Thursday.

While Chesapeake is set to issue $900 million worth of convertible preferred stock, KIC and CIC are in talks to acquire $300 million each, with Singapore state investor Temasek Holdings and Chinese private equity firm Hopu the remainder, Hankyung said on its website (

The economic daily quoted a government official as saying that KIC had been negotiating to buy stakes in the energy firm and it was possible for the Korean sovereign wealth fund to invest in the stakes as a financial investor not as management.

Park Sang-il, spokesman at KIC, said: “Neither investment nor investing amount have been decided, since we received an offer to invest together.” He declined to elaborate on it.

Chesapeake Energy, one of the largest U.S. natural gas producers, said earlier this month that it expected to receive at least $2 billion from the sale of a stake in its Marcellus Shale properties as part of its latest plan to raise cash.

(Reporting by Cho Mee-young; Editing by Jacqueline Wong)