GLNCY Glencore Plc (PK)

By Adriano Marchese

Teck Resources Ltd. rejected an unsolicited acquisition proposal by Swiss multinational commodity trading and mining giant Glencore PLC and said it isn't contemplating selling the business.

The Canadian natural resources company said Monday that Glencore proposed an all-share acquisition by offering 7.78 Glencore shares for each Teck class B subordinate voting share and 12.73 shares for each Teck class A common share.

Teck said the offer represented a 20% premium for both share classes.

Teck's shares have fallen about 3.6% in 2023, closing on Friday at 49.35 Canadian dollars ($36.51) and are down 6.6% over the last 12 months.

"The Glencore proposal would expose Teck shareholders to a large thermal coal business, an oil trading business and significant jurisdictional risk, all of which would negatively impact the value potential of Teck's business, is contrary to our ESG commitments and would transfer significant value to Glencore at the expense of Teck shareholders," Chief Executive Jonathan Price said.

In February, Teck said it would spinoff its steelmaking coal business to shareholders, creating two independent companies, Teck Metals Corp. and Elk Valley Resources Ltd., which would focus on base-metals production and steelmaking coal production, respectively.

As part of the proposal, Glencore would proceed with the demerger of the combined thermal and metallurgical coal businesses as well as the ferro-alloy operations of the merged company into a new publicly traded company.

The Teck board said Monday that it continues to recommend shareholders vote in favor of the proposed separation.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

April 03, 2023 07:33 ET (11:33 GMT)

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