CIC invests in Teck

Finance

Publishing Date: 03 Jul 2009 4:34pm GMT
Author: Mining Journal

China Investment Corp (CIC) has purchased a 17.2% equity interest in Teck Resources Ltd through a wholly-owned subsidiary. CIC is paying C$17.21/share for 101.3 million Class B subordinate voting shares. Teck announced that it will apply the net proceeds of the transaction to reduce outstanding bank debt.

On closing, CIC will indirectly hold 17.5% of Teck's outstanding Class B shares, representing 17.2% of the Vancouver-based company's equity and 6.7% of its voting interest.

Upon completion of the transaction, Teck's Class A shareholders as a group will hold a 61.8% voting interest in Teck, with Temagami Mining Co holding a 28.5% voting interest.