China's state-owned Hunan Valin is to take a 16.5 percent stake in Australia's third-largest iron ore miner, Fortescue Metals.
In addition, Fortescue is continuing negotiations with China's $US200 billion ($A308 billion) sovereign wealth fund, China Investment Corp, on a possible $3 billion hybrid funding package to fast-track its growth plans in the Pilbara. It also hopes to secure another $500 million from an institutional placement of shares.
Valin's $1.2 billion deal involves a placement of 225 million shares from Fortescue at $2.48 each and the acquisition of 275 million shares from US fund manager Harbinger Capital Partners, reducing Harbinger to a 10 per cent stake.
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