China invests $1.74-billion in Teck

By Peter Koven and Eric Lam, Financial PostJuly 3, 2009 Photograph by: Handout photo, Handout photo Teck Resources Ltd. has struck a landmark agreement with a Chinese sovereign wealth fund that will give the company $1.74-billion in cash and a strategic partner in the most important export market for its products. Under the terms of the deal, announced Friday morning, China Investment Corporation (CIC) will buy 101.3 million of Teck's Class B shares in a private placement. That will give it a 17.2% equity and a 6.7% voting stake in Teck. Teck will use the proceeds from the placement to continue paying down the massive debts incurred from last year's top-of-the-market, $14-billion acquisition of the assets of Fording Canadian Coal Trust. On a conference call, chief executive Don Lindsay talked about the importance of having a... [read full story]                    

powered by