Glass Lewis recommends shareholders should vote against Teck’s coal business spinoff plan: report

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It follows another influential proxy adviser, Institutional Shareholder Services (ISS), which also advised shareholders to reject Teck’s plan

, which has offered Teck’s shareholders 24% of the combined metals group and up to $8.2 billion in cash for those who may not want exposure to thermal coal.

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.

 

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