Teck Resources Ltd. (TSX: TECK.B) is still actively evaluating various offers for its steelmaking coal business as it aims to shift focus to becoming a standalone base metals producer. The move comes amidst the company’s ongoing efforts to stave off a takeover from Glencore Plc.
Swiss commodities behemoth Glencore presented a $25-billion hostile takeover bid earlier this spring, which Teck’s board initially rejected. The tension grew when Teck called off a shareholder vote on its plan to spin off the coal operations, having faced opposition from Glencore and a lack of required support. Since then, Glencore has come up with a new proposal to acquire Teck’s steelmaking segment for an undisclosed sum while also remaining open to acquiring the entire company.
CEO Jonathan Price assured that the company is exploring a number of structures with various interested parties, which include Glencore, Canadian mining financier Pierre Lassonde, and India’s JSW Steel Ltd., the latter considering up to a 20% stake. “We’re not sitting on our hands,” he said during the company’s earning’s call last week. “We are working on this very actively right now and we’re engaged with multiple counterparties.”
The past quarter also marked a drop in profits for Teck, from $1.8 billion to $643 million, reflecting falling global copper prices. Revenue for the quarter declined to $3.5 billion from $5.3 billion a year ago, along with an adjusted profit falling from $3.25 to $1.22 per diluted share.
Teck Resources last traded at $58.72 on the TSX.
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