By Adriano Marchese

Teck Resources Ltd. said it continues to urge company shareholders to approve the reorganization of its business after rejecting an unsolicited $23-billion takeover offer from Swiss-based Glencore PLC.

The Canadian miner said Monday that its board of directors continues to unanimously recommend shareholders approve the plan to spin off its steelmaking coal business to shareholders, creating two independent companies, Teck Metals Corp. and Elk Valley Resources Ltd. The two new companies would focus on base-metals production and steelmaking coal production, respectively.

Last week, Teck rejected the all-share offer from Glencore, citing exposure to a large thermal coal business, oil trading and increase the risk of operating in difficult jurisdictions.

Teck said Monday that its pending separation allows shareholders to tap into more value through a growth-oriented producer of energy transition metals and through the high-margin steelmaking coal business.

The reorganization also would include the introduction of a six-year sunset for the multiple voting rights attached to the class A common shares in the company.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

April 10, 2023 07:07 ET (11:07 GMT)

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