Teck withdraws separation proposal
Canadian miner Teck Resources on Wednesday morning withdrew its separation proposal that was due to be considered by shareholders at a meeting scheduled for later in the day.
Shareholders were voting on Wednesday on the proposed reorganisation of the business into Teck Metals and Elk Valley Resources (EVR), as well as on the stock option plan for EVR and the shareholder rights plan for the coal entity.
Instead, the company would now pursue a "simpler and more direct separation", said CEO Jonathan Price.
“We received very strong support from shareholders for the goal of separation, which is to unlock value through creation of a premier, pure-play base metals company and a world-class steelmaking coal company. We have also listened and heard the feedback that some shareholders would prefer a more direct approach to separation," he stated.
“Our plan going forward is to pursue a simpler and more direct separation, which is the best path to unlock the full value of Teck for our shareholders.”
Price reiterated that suitor Glencore’s rejected proposals remained a "non-starter, with the same flawed structure and material execution risks identified by the board".
All other matters to be considered at the meeting remain unchanged.
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