Teck Resources doubles down on plans to split company after Glencore bid
Teck Resources says its spin-off will give shareholders more choice and a way to maximize value
A week after Swiss mining giant Glencore made an unsolicited bid for the Vancouver miner, Teck Resources Ltd. is doubling down on efforts to break it up.
In an investor presentation released today, Teck Resources said the spin-off will provide shareholders with more options and ways to maximize value, as they will own both Teck Metals and Elk Valley Resources.
The company said it plans to responsibly exit steelmaking coal at fair value.
It added that Teck’s current plans had no competitive or regulatory hurdles to overcome.
Glencore offered 7.78 of its shares in exchange for each Teck Class B subordinated voting share, representing a 20% premium on the date of its offer.
Teck’s board unanimously rejected the offer because it would expose shareholders to copper, thermal coal and oil deals, and said the pitch did not present a “consistent plan” for its proposed coal company.
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