Teck Resources Ltd. said it’s received proposals for potential deals involving its coal operations as the Canadian miner evaluates the future of the business while fending off a takeover bid from Glencore Plc.
(Bloomberg) — Teck Resources Ltd. said it’s received proposals for potential deals involving its coal operations as the Canadian miner evaluates the future of the business while fending off a takeover bid from Glencore Plc.
Teck was forced back to the drawing board in April after failing to win enough shareholder support for a plan to split its coal and metals businesses into two separate companies. It said at the time that splitting off the coal unit remained preferable to Glencore’s offer, and is now under pressure to come up with an improved plan, while the prospect of a higher bid from Glencore looms.
Teck has received a number of inbound indications of interest regarding various forms of potential transactions involving its steelmaking coal business, it said in a statement on Tuesday. Teck didn’t provide any details about the proposals. However, one interested buyer is likely Canadian mining financier Pierre Lassonde, who has previously expressed interest in acquiring the coal assets with a consortium of investors.
The Globe and Mail newspaper quoted Lassonde last week saying that Teck was leaning toward selling only a portion of its coal business.
“Teck’s board will appropriately consider and evaluate any proposal that can unlock the tremendous potential of Teck’s premium businesses and portfolio of high-quality assets as part of our ongoing work to continue building a great mining business and realize value for shareholders,” said Teck chairperson Sheila Murray.
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