Teck Resources to split in two, spinning off steelmaking coal unit
Teck Resources $Teck Resources Ltd(TECK)$ unveiling a plan to spin off its steelmaking coal unit to shareholders, creating two independent, publicly-traded companies.
Teck Resources (TECK) said the split will create two companies, Teck Metals Corp., which will focus on the production of base metals, and Elk Valley Resources Ltd., which will focus on steelmaking coal production.
Teck Metals will receive an 87.5% interest in gross revenue royalty from the steelmaking coal business through the transition period.
The company said it also reached agreement with steelmaking coal joint venture partners Nippon Steel and Posco (PKX) to exchange their minority interests in two of their operations for interest in the new business.
Elk Valley Resources will own the Elkview and Greenhills operations in British Columbia, while Nippon Steel will receive a 10% stake in Elk Valley for C$1.03B cash investment while Posco will receive a 2.5% interest.
Teck (TECK) will seek shareholder approval of the separation at a meeting of shareholders expected on April 26.
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