Teck Resources Drops Separation Plans, Will Seek Simpler Approach to a Split
April 26 2023 - 9:53AM
Dow Jones News
By Robb M. Stewart
Teck Resources Ltd. has dropped plans to split the resources
company in two and said it would instead seek a simpler approach to
a separation.
The Canadian mining company's board said strong support was
received from shareholders for a separation aimed at unlocking
value by splitting the steelmaking coal operations from the base
metals business, but it also heard that some investors would prefer
a more direct approach to a split. Teck said the company aims to
incorporate feedback into its revised plans.
The company said in the interim it continues to ramp up its
flagship Quebrada Blanca Phase 2 copper project in Chile to full
production while it advances a pipeline of copper projects and
looks to optimize production at existing operations.
Teck's shareholders were scheduled to vote on the proposed
separation at the annual meeting Wednesday.
The company had the support for the split from its controlling
shareholders, chairman emeritus Norman Keevil and Japan's Sumitomo
Metal Mining Co., who collectively account for 48% of the total
voting power over Teck via the company's A shares.
Teck had rejected a takeover bid from metals and mining giant
Glencore PLC, which has said it remains prepared to engage with
Teck's board but is also considering going directly to shareholders
with its roughly $23 billion proposal.
"Glencore's rejected proposals remain a non-starter, with the
same flawed structure and material execution risks identified by
our board," Teck Chief Executive Jonathan Price said.
Teck shares were up 6.5% at $46 on the New York Stock Exchange
in premarket trade.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
April 26, 2023 09:38 ET (13:38 GMT)
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