Teck Resources will spin off its steelmaking coal business and plans to simplify its share structure, in a sweeping overhaul that is likely to make the Canadian miner an increasingly attractive target for larger rivals.
and plans to simplify its share structure, in a sweeping overhaul that is likely to make the Canadian miner an increasingly attractive target for larger rivals.
It will still benefit from the coal business’s profits though: Teck Metals will own a royalty on revenue, as well as preferred shares in the new company, which will pay out about 90 per cent of EVR’s quarterly free cash flow, it said. The structure is for a transitional period, which Teck said could last about 11 years.
Teck has been weighing options for its coal business for some time. The company is one of the world’s largest exporters of metallurgical coal, which is used in the heavily polluting steel industry.
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