July 03, 2009 07:28 ET
BEIJING, CHINA--(Marketwire - July 3, 2009) - China Investment Corporation ("CIC") announced today that it has agreed to purchase on a private placement basis, through its wholly-owned subsidiary (SPV) Fullbloom Investment Corporation, 101,304,474 Class B subordinate voting shares(1) ("Class B Shares") of Teck Resources Limited ("Teck") for C$17.21 per share (the "Subscription Price"). The aggregate purchase price will be US$ 1.5bn (or approximately C$ 1.74bn) in cash. CIC does not currently hold any of Teck's shares.
After completion of the purchase, CIC will indirectly hold Class B Shares representing approximately 17.5% of Teck's issued and outstanding Class B Shares, approximately 17.2% of Teck's issued and outstanding shares and approximately 6.7% of the aggregate voting rights attaching to Teck's Class A common shares and Class B Shares. The transaction is expected to close on or about July 14, 2009 and is subject to customary conditions, including applicable stock exchange approvals.
CIC is acquiring the Class B Shares for investment purposes as a long-term passive financial investor and has agreed to hold the purchased shares for at least one year following closing. CIC is subject to certain contractual restrictions on the acquisition of additional Teck shares. Subject to certain limitations agreed with Teck, including the one year hold period, CIC may dispose of all or any portion of its Class B Shares or enter into other transactions with respect to such shares.
CIC will have the right to maintain its percentage ownership interest through participation in additional issuances of Teck shares or securities convertible into Teck shares. CIC will also be entitled to certain price protection, if Teck issues additional Class B Shares or other securities convertible into or exchangeable for Class B Shares within one year of closing at a price less than the Subscription Price.
Scotia Capital Inc. acted as financial advisor and Torys LLP acted as legal advisor to CIC in this transaction.
China Investment CorporationRoom 1710-BNew Poly PlazaNo. 1 Chaoyangmen BeidajieDongchengBeijing 100010China
China Investment CorporationShuilin Wang+86 (10) 6408 6277+86 (10) 6408-6908 (FAX)
See all RSS Newsfeeds