Skip to content
Subscriber Only

China's CITIC Becomes Biggest Shareholder in Friedland's Ivanhoe

  • Chinese conglomerate to buy 20% of Ivanhoe for $555 Million
  • Zijin Mining entitled to exercise anti-dilution rights
1470358261_copper mine

Photographer: Taylor Weidman/Bloomberg

Ivanhoe Mines Ltd. agreed to sell a minority stake to CITIC Metal Co., making the Chinese conglomerate the largest shareholder in the Canadian mining company and bumping founder Robert Friedland to second place.

CITIC will pay C$3.68 apiece for 196.6 million common shares, a premium of about 14 percent to the June 8 closing price. Ivanhoe will use the proceeds of approximately C$723 million ($555 million) to invest in the Vancouver-based company that holds copper, zinc and platinum deposits in Southern Africa.