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.”
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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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