China Investment Corp. to buy stake in Teck for $1.74 billion

VANCOUVER, B.C. - Cash-strapped mining giant Teck Resources Ltd. (TSX:TCK.B) says it has completed a $1.74 billion private placement designed to lighten its debt load. The Vancouver-based company says China Investment Corp. will buy 101.3 million class B voting shares for $17.21 each. Teck says CIC will own 17.5 per cent of the company's B shares and will hold onto the stock for at least a year. The sale, which is still subject to regulatory approval, is slated to close on July 14. Teck says the proceeds from the private placement will go towards paying down nearly US$10 billion in bank debt. Teck chief executive Don Lindsay says the deal will also give the company a chance to forge a partnership with a major foreign investor. "This transaction will have an immediate and very positive effect on Teck's balance sheet," Lindsay... [read full story]                    

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