China Investment Corp. cuts stake in Teck Resources to 10.4%, from 17.8% | iNFOnews | Thompson-Okanagan's News Source

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China Investment Corp. cuts stake in Teck Resources to 10.4%, from 17.8%

Original Publication Date September 05, 2017 - 10:21 AM

VANCOUVER - China Investment Corp. has reduced its holding in Teck Resources Ltd. (TSX:TECK.B) by about 42 per cent as it continues to reduce its exposure to Canada.

Vancouver-based Teck said the Chinese state-owned sovereign wealth fund sold 42 million class B shares, reducing its stake in the mining giant from 17.8 per cent to 10.4 per cent.

The news helped send Teck's share price down $2.11 or about 6.7 per cent to close at $29.47, on what was a down day overall for the Toronto Stock Exchange.

China Investment Corp. did not disclose the sale price of the shares, but Teck's stock has seen significant gains since the fund spent $1.74 billion buying 101 million Teck shares at $17.21 each in 2009.

The investment, part of the fund's mandate to diversify China's foreign exchange holdings, came as part of a wave of buying into Canada's resource sector, including bets on Penn West Petroleum and SouthGobi Resources and the opening of a Toronto office.

China Investment Corp., however, closed the Toronto office in favour of New York at the end of 2015, as the plunge in oil prices took a toll on energy sector stocks.

The fund has advised Teck that it plans to hold on to its remaining shares, with CIC executive vice-president Ju Weimin saying in a joint statement that it has confidence in Teck's management and is supportive of the company's direction.

Teck president Don Lindsay said in the statement that CIC has been helpful in building important relationships with customers in China.

News from © The Canadian Press, 2017
The Canadian Press

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