Partial sale of Teck's coal business 'more probable,' says Scotiabank analyst

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Teck Resources may announce a new plan to separate its coal assets in a few months, says Scotiabank analyst. Read more

But the company in April decided to come up with a new separation plan as it predicted its original proposal wasn’t going to get the required shareholder support that it needed to go ahead.

“Although the probability that Teck can divest the entire business at fair value has markedly improved over the past six months, we believe this scenario remains challenged by the large size of the transaction and the limited debt capacity of the standalone business,” he said in a note to clients on Aug. 29.

The analyst increased the level of ownership he expects Teck to sell to 70 to 100 per cent, from about 50 per cent.

 

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