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New York-listed Teck Resources Ltd on Monday said that it had received and unanimously rejected an ‘unsolicited and opportunistic’ acquisition proposal from Glencore PLC. Glencore offered 7.78 of its own shares for each Teck Class B subordinate voting share, and 12.73 shares for each Teck Class A common share. This represented a 20% premium for both on the date of the offer. The proposal from the commodity trading and mining company would see it buy Teck and then separate to create two businesses. Teck said that the offer was inferior to its own planned separation, which it said better positioned the resulting companies, Teck Metals and Elk Valley Resources, for success. It also said that the spun-out business envisioned by Glencore would be a majority thermal coal business, contrary to the global decarbonisation agenda. Teck said this would force shareholders to hold ‘massive thermal coal exposure’, which it believed would be ‘value destructive’. The firm similarly noted that Glencore’s proposal would introduce oil exposure into the merged base metals business, reversing the steps it has taken to exit oil. Glencore shares fell 1.5% to 457.70 pence each in London on Monday afternoon. Teck shares closed 0.9% higher at $36.50 each in New York on Friday, giving it a market capitalisation of $18.94 billion. The stock was up 12% in pre-market dealings on Monday. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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