China Investment offloads 7.26% stake in Teck Resources
China Investment (CIC) subsidiary Fullbloom Investment has sold around 7.26% of its outstanding shares of Canada-based mining company Teck Resources.
The stake sale comprises 42 million Class B subordinate voting shares. Upon completion, CIC will continue to hold 59,304,474 Class B subordinate voting shares, or 10.40% of the outstanding Class B shares.
The company’s voting interest in Teck will be reduced to around 4.40% from the previously held 7.36%.
Teck Resources president and CEO Don Lindsay said: “Prior to their purchase of our shares in July 2009, CIC told us they intended to be a long-term partner focused on financial returns.
“They have fully lived up to that commitment and, in addition, have been helpful in building important relationships with customers and others in China.”
CIC indicated that the transaction was conducted in the normal course of its portfolio adjustment. It is expected to continue to own its remaining Class B shares as a long-term financial investor in Teck.
CIC executive vice-president Ju Weimin said: “We are supportive of the strategic direction of Teck and look forward to ongoing close cooperation in future.”
As a development company, Teck is focused on copper, steelmaking coal, zinc, and energy.
In July 2009, CIC through Fullbloom reached an agreement to acquire 101,304,474 Class B subordinate voting shares of Teck Resources for around $1.5bn.