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Teck Sells 17% Stake to China Fund for C$1.74 Billion
http://www.bloomberg.com/apps/news?p...d=a5bzWj2HxTtw
By Mark Herlihy
July 3 (Bloomberg) -- Teck Resources Ltd., Canada’s largest diversified mining company, sold a 17 percent stake to China Investment Corp., the country’s $200 billion fund sovereign wealth fund, for C$1.74 billion ($1.5 billion) to reduce debt.
CIC will buy 101.3 million Class B subordinate voting shares for C$17.21 each, Vancouver-based Teck Resources said today in a statement distributed by Marketwire.
China, the world’s largest steelmaker, is seeking access to raw materials for metals production, such as iron ore and coal. Wuhan Iron & Steel Group offered $400 million for part of Brazil iron-ore miner MMX Mineracao e Metalicos SA last month. Rio Tinto Group last month scrapped a $19.5-billion investment plan from its biggest shareholder Aluminum Corp. of China.
Teck Resources said May 27 it was in talks to sell coking coal assets to Chinese companies to help it reduce debt after adding $9.8 billion of loans last year to buy Fording Canadian Coal Trust, a producer of coal used in steelmaking. Teck completed the acquisition shortly before metals and energy prices slumped amid a global recession.
The company sold $4.2 billion of bonds on May 5 to refinance short-term obligations. Teck last year sold more than half its coking coal production to Japan and Korea, and recently started selling to China.
To contact the reporter on this story: Mark Herlihy in London at mherlihy1@bloomberg.net.
Last Updated: July 3, 2009 08:40 EDT
Teck Sells 17% Stake to China Fund for C$1.74 Billion
http://www.bloomberg.com/apps/news?p...d=a5bzWj2HxTtw
By Mark Herlihy
July 3 (Bloomberg) -- Teck Resources Ltd., Canada’s largest diversified mining company, sold a 17 percent stake to China Investment Corp., the country’s $200 billion fund sovereign wealth fund, for C$1.74 billion ($1.5 billion) to reduce debt.
CIC will buy 101.3 million Class B subordinate voting shares for C$17.21 each, Vancouver-based Teck Resources said today in a statement distributed by Marketwire.
China, the world’s largest steelmaker, is seeking access to raw materials for metals production, such as iron ore and coal. Wuhan Iron & Steel Group offered $400 million for part of Brazil iron-ore miner MMX Mineracao e Metalicos SA last month. Rio Tinto Group last month scrapped a $19.5-billion investment plan from its biggest shareholder Aluminum Corp. of China.
Teck Resources said May 27 it was in talks to sell coking coal assets to Chinese companies to help it reduce debt after adding $9.8 billion of loans last year to buy Fording Canadian Coal Trust, a producer of coal used in steelmaking. Teck completed the acquisition shortly before metals and energy prices slumped amid a global recession.
The company sold $4.2 billion of bonds on May 5 to refinance short-term obligations. Teck last year sold more than half its coking coal production to Japan and Korea, and recently started selling to China.
To contact the reporter on this story: Mark Herlihy in London at mherlihy1@bloomberg.net.
Last Updated: July 3, 2009 08:40 EDT
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