By Canadian Press

Glencore willing to take takeover offer for Teck Resources directly to shareholders

Apr 27, 2023 | 5:17 AM

VANCOUVER — Swiss commodities giant Glencore says it is willing to present its takeover offer directly to shareholders of Teck Resources Ltd. if the company’s board does not come to the negotiating table regarding its unsolicited proposal.

The statement came after Teck repeated its assertion that the Glencore’s offer is a “non-starter,” even after the Vancouver-based miner cancelled a key shareholder vote Wednesday on a plan to split its business that Glencore had opposed.

Teck called off the vote when it became apparent it did not have the required two-thirds majority approval from shareholders for the proposal, which would have split the company into Teck Metals and Elk Valley Resources. Instead, the company will pursue what is says will be “a simpler and more direct separation.”

Teck’s board has rejected Glencore’s unsolicited takeover offer that would see 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. 

The proposal represented a 20 per cent premium when it was first made, but Glencore says it believes that with engagement it could improve its structure, terms and value.

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

This report by The Canadian Press was first published April 27, 2023.

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

The Canadian Press