The logo for Canadian mining company Teck Resources Limited is displayed above their booth at the Prospectors and Developers Association of Canada annual conference in Toronto, Ontario, Canada March 7, 2023. REUTERS/Chris Helgrenshareholders should vote against Teck's plan to spin off its coal business, Bloomberg News reported on Saturday.influential proxy adviser, Institutional Shareholder Services , which also advised shareholders to reject Teck's restructuring plan this week.
The takeover would involve combining and spinning off the thermal and steelmaking coal businesses of both companies. Teck has rejected the offer and made changes to its own proposed restructuring plan to allow for a potentially shorter path to fully separate the copper and zinc business Teck Metals from the steelmaking coal Elk Valley business.
The revised plan would include measures to cap annual capital spending by the coal business at $1.3 billion and reduce the minimum term of the royalty paid by to Teck Metals to three years from 5.5 years.Glencore has declined to comment, but has previously said there are flaws in Teck's own spinoff plan because it would leave the metals unit still exposed to coal revenue.