Canadian mining and processing company Teck Resources on Friday announced that it will sell a 17.2% stake to China Investment Corporation CIC via a private placement. By taking an interest in Teck, CIC is contributing the trend of Chinese investment in foreign resource companies.
The sovereign wealth fund will buy 101.3 million class-B subordinated voting shares at a price of C$17.21 each, amounting to a total outlay of C$1.74 billion $1.5 billion. The holding represents 17.5% of Teck's outstanding class-B shares representing approximately 17.2% equity, which will provide CIC with a 6.7% voting interest in the company. The stake comes with no board representation.
After the deal is completed, which is expected to...
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