Teck Resources taking ‘direct approach’ to separate its businesses

Teck Resources Ltd. will not go ahead with a key shareholder vote on its plan to separate its metals and steelmaking coal businesses into two companies.

Teck Resources Ltd. will not go ahead with a key shareholder vote on its plan to separate its metals and steelmaking coal businesses into two companies and instead will pursue what it called a simpler and more direct approach.

The announcement came just hours ahead of the company’s annual meeting on Wednesday.

Teck chief executive Jonathan Price said the company received strong support from shareholders for the goal of separation.

“We have also listened and heard the feedback that some shareholders would prefer a more direct approach to separation,” Price said in a statement.

“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.”

Teck is facing an unsolicited takeover offer from Swiss commodities trader Glencore, which had urged shareholders to reject the company’s proposal in favour of its offer to acquire the company.

Glencore had said it would be unable to pursue its own bid if Teck’s plan to separate its businesses went ahead.

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