Teck Shares Climb After Controlling Shareholder Backs Company's Plans
April 17 2023 - 11:33AM
Dow Jones News
By Robb M. Stewart
Teck Resources Ltd.'s shares jumped Monday after the mining
company's controlling shareholder and chairman emeritus backed
plans to split Teck in the face of a takeover bid from Glencore PLC
but said he wouldn't stand in the way of possible dealmaking after
the separation.
In morning trading, the shares were 5.4% higher at C$63.71 on
the Toronto Stock Exchange, widening the advance so far this year
to 24%. In New York, the stock was ahead 4.7% at $47.35.
Norman Keevil in a statement said he fully supports the Teck
board's rejection of the takeover proposal from metals and mining
giant Glencore. Mr. Keevil noted there are numerous parties in the
mining industry with their eyes on Teck that would be interested in
partnering or investing in the company after it separates its base
metals and steelmaking coal businesses.
"I would support a transaction--whether it be an operating
partnership, merger, acquisition, or sale--with the right partner,
on the right terms for Teck Metals after separation," Mr. Keevil
said, adding that pursuing a sale or merger transaction now would
take away significant post-separation value from shareholders.
The Canadian company last week rejected a revised roughly $23
billion merger offer from Glencore, saying that its own plan to
split into two independent companies was in the best interest of
its shareholders. In rebuffing the approach, Tech said a deal with
Glencore would limit its ability to potentially seek other buyers,
would expose the company to regulatory risk from antitrust
authorities and would take too long to complete.
Teck shareholders are set to vote April 26 on the company's plan
to split into two.
The Keevil family along with Japan's Sumitomo Metal Mining Co.
control a combined about 48% of the total voting power over Teck
via ownership of its Class A shares.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
April 17, 2023 11:18 ET (15:18 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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