Norway’s sovereign wealth fund plans to support Teck Resources split

Vancouver –

Norway’s sovereign wealth fund will vote to assist Teck Resources Ltd.’s plan to separate the corporate’s metals and steelmaking coal companies into two separate corporations at a key shareholder assembly subsequent week.

The choice comes as Teck works to safe assist for its plan over an unsolicited takeover proposal by Swiss firm Glencore, which is urging shareholders to reject the corporate’s proposal in favour of its supply to accumulate the corporate.

Glencore has mentioned it can not pursue its bid if Teck’s plan to separate its companies goes forward since it could add important complexity to the deal.

Norges Bank Investment Management, which manages Norway’s Government Pension Fund Global, printed its voting intentions as a part of its routine disclosures on its web site. It held a roughly 1.5 per cent stake within the Canadian mining firm as of the top of 2022.

The United Steelworkers (USW), the union which represents over 4,000 Teck workers in B.C., has additionally come out in favour of Teck’s deliberate cut up into Teck Metals and Elk Valley Resources.

In an announcement on Thursday, USW District 3 director Scott Lunny mentioned Teck helps the economies of quite a few B.C. communities through which it operates, together with Logan Lake, Sparwood, Elkford and Trail.

“Management has briefed the union on their plans and our union believes the plan to split into two, B.C.-based companies is in the best interest of our members at the metals operations and at the coal mines,” Lunny mentioned.

“This is a well-thought-out plan that will create two strong companies willing to work with us and British Columbians to become ESG leaders, provide stability and certainty for our members, provide ongoing benefits to Indigenous nations, and invest in B.C.”

Teck introduced in February a proposal to separate up its metals and steelmaking coal companies into two corporations, Teck Metals and Elk Valley Resources. The change requires approval by a two-thirds majority vote by the category A shareholders in addition to approval by a two-thirds majority vote by the category B shareholders.

Teck shareholders will vote on the separation plan at a gathering on April 26.

This report by The Canadian Press was first printed April 21, 2023.