Sumitomo Metal Mining Co. said it will back Teck Resources Ltd. in its planned spinoff of coal assets, confirming its earlier support in the face of an alternative takeover proposal from Glencore Plc.
(Bloomberg) — Sumitomo Metal Mining Co. said it will back Teck Resources Ltd. in its planned spinoff of coal assets, confirming its earlier support in the face of an alternative takeover proposal from Glencore Plc.
The Japanese company reiterated “its continuous support for Teckʼs plan to create two separate world-class independent companies,” it said in a statement. Teck has already said its main Class A shareholders — of which Sumitomo is one — had committed to voting in favor.
Teck is trying to get backing for a split of the company ahead of a shareholder vote on the proposal on April 26. Glencore has indicated it could raise its $23 billion buyout bid and that it’s willing to put an offer direct to Teck’s shareholders.
Read more: Glencore Dangles Prospect of Higher Teck Bid as Vote Looms
Sumitomo directly holds 18.9% of Teck’s Class A shares along with with the Keevil family, as well as 0.1% of Class B shares. It also holds 49% of Temagami Mining, which owns 55% of Teck’s Class A shares.
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