China Investment Corp (CIC) will spend US$1.5 billion for a 17.2% stake in Canadian mining and processing company Teck Resources through a private placement, FinanceAsia reported. Teck is Canada’s largest diversified mining, mineral processing and metallurgical company with interests in 15 mines in Canada, the US, Chile and Peru, as well as exploration activities on four continents. The company is a major player in the production of copper, metallurgical coal and zinc. CIC will acquire 101.3 million class B shares in Teck, which provides the sovereign wealth fund with a 6.7% voting share in the company but no board representation. CIC will hold the shares for at least one year, and is only allowed to purchase additional shares in order to prevent dilution of its existing stake. CIC has also committed not to sell its shares to other mining firms or to Teck’s significant customers.
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