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Sing Tao (Toronto), December 14, 2012

This translation is provided via Google Translate from the original.

Sing Tao (Toronto), December 14, 2012
China Investment Corporation denounced 12.5% ​​stake billion acquisition Galindo accounted island does not affect the decision-making

Responsible for the Chinese government to conduct foreign exchange investment management limited liability of the China Investment Corporation (CIC), plan to 1 billion, the acquisition of the 12.5% ​​stake of British Columbia’s second largest private woodland owners island woodland (Island Timberlands). The two sides did not disclose the progress and details of the acquisition, but industry sources said the two sides will soon announce the acquisition.

CIC was established in September 2007, a wholly state-owned company, China’s Ministry of Finance to issue special treasury bonds to raise 1.55 trillion yuan, in order to buy the equivalent of U.S. $ 200 billion in foreign exchange reserves, as the registered capital of CIC. The amount of assets under management as of the end of 2010, CIC about 4,096 million U.S. dollars, is one of the world’s large sovereign funds. CIC about 6 percent of asset investment in the United States, the rest of the distribution of the Eurasian and Canada, to establish the company’s first overseas office in Toronto last year.

Environmental groups worry impacted by environmental law

The island woodland company has more than 1 million acres of forest land in the Americas, including 254,000 acres of high-quality forest land in Vancouver Island. The shareholders of the company, including Toronto-based Brookfield infrastructure Partnership (Brookfield Infrastructure Partners-BIP), as well as some investment funds.

According to the analysis in investment for the island woodland, one of the main purpose of the conditions in many countries of the world, a large number of inject liquidity into the market to stimulate the economy, the inflation increases the risk of one of the means possible for China’s foreign exchange reserves to hedge against inflation .

Environmental groups Ancient Forest Alliance of British Columbia (Ancient Forest Alliance) pointed out that the Chinese-funded enterprises to acquire British Columbia woodland, will Canada through new environmental laws pose obstacles In addition, we will damage the British Columbia forest industry employment and Aboriginal community interests. But there are people in the industry means, even if the acquisition is successful, only 12.5% ​​of the equity proportion in the cast, not to affect the company’s decision-making.
Operation of the Office of Communications of the provincial forest, land and natural resources manager Thomas (Vivian Thomas), British Columbia company involved in the acquisition of private companies, commercial trading practices do not violate any laws. Like many other industries in the same British Columbia, the British Columbia forestry in the past there has been the fact owned by foreign companies, this transaction no special case.


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