19. China Investment buying 17% US$1.5bil in Teck Resources

VANCOUVER Mining company Teck Resources Ltd. said Friday it is selling a 17 percent stake to China Investment Corp. for 1.74 billion Canadian dollars ($1.5 billion) in a bid to reduce its debt load. The Vancouver-based company said CIC, the world's largest commodity buyer, will buy 101.3 million class B voting shares for 17.21 Canadian dollars each. CIC will hold onto the stock for at least a year, said the mining company. The proceeds from the private placement will go toward paying down nearly $10 billion in bank debt and will also give the company a chance to forge a partnership with a major foreign investor, said Teck's chief executive in a conference call. "We will have a financial relationship with a very deep-pocketed investor who would potentially participate in future development projects," said Don... [read full story]                    

powered by