Teck Resources receives indications of interest for steelmaking coal business

Teck Resources Ltd. says it has received a number of indications of interest regarding potential transactions involving the company’s steelmaking coal business as it works to split the operations from its base metals business.

The Vancouver-based company says its board and independent special committee will consider and evaluate the proposals received to determine whether they are in the best interests of Teck’s shareholders and other stakeholders.

Teck called off a shareholder vote in April on a plan to split the company into Teck Metals and a new company to be named Elk Valley Resources that would own the coal business after it became apparent it did not have the required support for the proposal.

Swiss commodities giant Glencore made an unsolicited takeover bid for the company earlier this year, but the Teck board rejected the offer that would have seen shareholders receive a stake in a combined metals company as well as a choice of cash or shares in a company that would hold their merged coal assets. 

Teck is controlled by the Keevil family, which owns the company’s class A shares together with Japanese company Sumitomo Metal Mining Co. Ltd.

Teck chairman emeritus Norman Keevil has said Glencore’s proposal is the wrong one, at the wrong time, but that he is open to talking about other possible deals once the company completes its own plan to split its business. 

This report by The Canadian Press was first published June 6, 2023.

Companies in this story: (TSX:TECK.B)

The Canadian Press
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