Teck doubles down on split
The Canadian Press – Apr 10, 2023 / 6:43 am | Stories: 420547
Teck Resources Ltd. is doubling down on its plan to split the company, a week after Swiss mining giant Glencore made an unsolicited bid for the Vancouver miner.
In an investor presentation issued today, Teck says its separation will give shareholders more choices and ways to maximize value because they will hold shares in both Teck Metals and Elk Valley Resources.
The company says its plan provides a responsible exit from steelmaking coal at fair value.
It adds that Teck’s current plan has no competition or regulatory hurdles to overcome.
Glencore’s offer of 7.78 of its shares for each Teck Class B subordinate voting share amounts to a 20 per cent premium on the date its offer was made.
Teck’s board of directors unanimously rejected the offer because it would expose shareholders to copper and thermal coal and oil trading, and said the pitch did not present a “coherent plan” for its proposed coal company.