|
Glencore PLC takeover target Teck Resources Ltd on Wednesday pulled its own vote on separation plans after receiving investor feedback. Teck has so far resisted Glencore’s takeover attempts and backed its own restructuring plan. Shareholders would have had the chance to vote on its plan on Wednesday, though Teck withdrew the proposal. ‘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,’ Teck Chief Executive Jonathan Price said. ‘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.’ Earlier in April, Glencore revised its offer for Teck, adding a cash element of $8.2 billion plus a 24% stake in MetalsCo to the Vancouver-based miner’s shareholders. MetalsCo would be a transition metals focused business. It would differ from CoalCo, which would be a standalone coal unit. Teck shareholders could opt for CoalCo shares instead of the cash and would own up to 24% of it if all did. Glencore had originally 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. If the deal succeeds, Glencore would have owned 76% of the merged entity, with Teck owning the remaining 24%. Glencore shares rose 3.0% to 483.00 pence each in London on Wednesday. Teck’s Class B stock was up 4.7% in New York on Wednesday afternoon, giving it a market capitalisation of around $23.51 billion. Copyright 2023 Alliance News Ltd. All Rights Reserved.
|
