Canadian diversified miner Teck Resources on Tuesday announced the reorganisation of its business into two independent, publicly listed companies. The company would change its name to Teck Metals and would spin off its steelmaking coal business into Elk Valley Resources .said that the transaction simplified the portfolio of each company, allowing for strategic and financial focus and the ability to pursue tailored capital allocation strategies.
Teck shareholders will receive common shares of EVR in proportion to their Teck shareholdings at an exchange ratio of 0.1 of a common share of EVR for each Teck share and about $0.39 cash per share for an aggregate of $200-million. Further, Teck has reached agreement with its steelmaking coal joint venture partners and major customers, Nippon Steel Corporation and Posco, to exchange their minority interests in the Elkview and Greenhills operations for interests in EVR. As a result, EVR will own 100% of its steelmaking coal operations.