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Re: China goes Shopping AGAIN
And again...:p:Originally posted by Mega View Post
China Investment Corp. to buy stake in Teck for $1.74 billion
By THE CANADIAN PRESS – 2 hours ago
VANCOUVER, B.C. — Cash-strapped mining giant Teck Resources Ltd. (TSX:TCK.B) says it has completed a $1.74 billion private placement designed to lighten its debt load.
The Vancouver-based company says China Investment Corp. will buy 101.3 million class B voting shares for $17.21 each. Teck says CIC will own 17.5 per cent of the company's B shares and will hold onto the stock for at least a year.
The sale, which is still subject to regulatory approval, is slated to close on July 14.
Teck says the proceeds from the private placement will go towards paying down nearly US$10 billion in bank debt.
Teck chief executive Don Lindsay says the deal will also give the company a chance to forge a partnership with a major foreign investor.
"This transaction will have an immediate and very positive effect on Teck's balance sheet," Lindsay said in a statement.
He said the deal is a chance for Teck to establish a relationship with a major Chinese financial investor, with a deep understanding of China.
Teck has been selling assets and cutting costs to pay down the debt acquired after the $14-billion purchase of Fording Canadian Coal Trust last year...
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Re: China goes Shopping AGAIN
And again, and again, and again...:p :p :pOriginally posted by GRG55 View Post
...The following are some major Chinese investments in the commodities and energy sectors this year:
* June 24, 2009 - Sinopec, China's largest oil refiner, agreed to buy Swiss oil explorer Addax Petroleum Corp (AXC.TO) for $7.24 billion, a deal that will give it access to high-potential oil blocks in West Africa and Iraq.
* June 23, 2009 - Chinese power company GCL-Poly Energy Holdings (3800.HK) said it would pay $3.38 billion for a Jiangsu province solar parts maker in a move to tap the country's growing solar energy industry.
* June 9, 2009 - Canadian mining and exploration company Consolidated Thompson (CLM.TO) said it had finalized terms of an agreement with China's Wuhan Iron and Steel Corp for a $240 million investment.
* May 24, 2009 - Asia's largest oil and gas producer PetroChina (0857.HK) agreed to buy Keppel Corp's (KPLM.SI) 45.5 percent stake in Singapore Petroleum Company for S$1.47 billion ($1.02 billion).
* April 30, 2009 - Chinese state-owned China Nonferrous Metal Mining Group agreed to take a majority stake in Australian rare earths miner Lynas Corp Ltd (LYC.AX) for A$252 million ($185.7 million).
* April 1, 2009 - Australian zinc miner OZ Minerals (OZL.AX) agreed to sell most of its assets to China's Minmetals for $1.21 billion.
* Feb 24, 2009 - Chinese steel mill Hunan Valin Iron and Steel said it will pay A$1.2 billion ($770 million) for a 16.5 percent stake in Fortescue Metals Group (FMG.AX).
* February 5, 2009 - Shenzhen Zhongjin Lingnan Nonfemet (000060.SZ), China's third-largest zinc producer, wins Australian government approval to acquire a controlling stake in zinc miner Perilya (PEM.AX).
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Re: China goes Shopping AGAIN
So, are they at the point where they'll make more money off of commodities than they'll loose on treasuries if the dollar tanks?Comment
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Re: China goes Shopping AGAIN
the fools -
why buy this stuff, when US treasuries are such a good deal [heavy sarcasm]
Gary North in an article this week:
http://www.garynorth.com/public/5141.cfm
posted this link from the US Treasury site:
http://www.ustreas.gov/press/releases/tg10.htm
one of my favorite parts:
"Those outsized funding needs reflect the dismal outlook for economic growth and Congress and the Administration's efforts to bolster the economy through policy action. Tax receipts are declining at a brisk pace given the climb in unemployment, reduced wealth and slowing corporate profits. Receipts were down by nearly 10% in the first three months of the new fiscal year and the pace of decline appears to have accelerated in January. Individual nonwithheld tax receipts in the month plunged by almost 15% versus a year ago. Meanwhile, outlays are surging at a breakneck pace as automatic stabilizers (unemployment compensation, food stamps, etc.) kick in and the government puts in place programs to try and stabilize the financial sector."
another fav part:
"The deterioration in the budget outlook, combined with expenditures associated with the TARP, potential FDIC guarantees, and expected additional stimulus spending have increased private forecasts for total funding needs of the U.S. government for fiscal year 2009 to approximately $2 trillion. This is likely to stress the existing auction schedule and consequently warrants tangible adjustments to that schedule."
and the shocker:
"The average maturity of the debt has already fallen from a range of 60 to 70 months which existed from the mid 1980's until 2002 to a level of 48 months more recently."
In Mr. North's article - he does the math. The US govt needs to turn-over/sell 240B a month now in its paper just to stay afloat.Comment
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Re: China goes Shopping AGAIN
By historical measures the price of commodities are generally cheap and US Treasuries are generally expensive [low yield]. Seems like a reasonable trade. :cool:Originally posted by Kadriana View PostComment
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Re: China goes Shopping AGAIN
Why worry? There is an unlimited amount of dollars for use in purchasing at these auctions.
"the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost."
http://www.federalreserve.gov/BOARDD...21/default.htm
The last 2 words of the quote are quite interesting - "no cost" REALLY???Comment
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Re: China goes Shopping AGAIN
Looks like they're investing in a lot of zinc. For a while, people were investing in whatever the US government invested in. I'm wondering now if it's best to invest in whatever China invests in.Originally posted by GRG55 View PostComment
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Re: China goes Shopping AGAIN
I was lucky enough to get a few resource plays last fall http://www.itulip.com/forums/showthr...6131#post46131 before the Chinese showed up. I think Canada may be next regardless of recent price increases, it’s a dollar problem.Originally posted by Kadriana View Post
CIC Canada connection, Mr. Chee.
http://www.theglobeandmail.com/blogs...rticle1205311/
Just a matter of time before Chinese resource accumulation trades in RMB.
http://online.wsj.com/article/BT-CO-...02-704090.htmlLast edited by bill; July 03, 2009, 11:44 AM.Comment
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