Sumitomo Metal Mining Co. Ltd., a key shareholder at Teck Resources Ltd., says it will vote in favour of the company’s plan to separate its metals and steelmaking coal operations into two companies.
The Japanese company says in a statement that it has built a trusted partnership with Teck in the mining business.
Swiss company Glencore has proposed a takeover offer for Teck that would have shareholders receive a stake in a combined metals company as well as a choice of cash or shares in a company that would hold their merged coal assets.
However, Glencore has said Teck shareholders must first reject the company’s plan to split its business into Teck Metals and Elk Valley Resources.
Teck, which has rejected the Glencore proposal, is controlled by the Keevil family, which owns the company’s multi-voting class A shares together with Sumitomo.
Sumitomo holds 18.9% of Teck’s class A shares and 0.1% of its class B shares. It also holds a 49% interest in Temagami Mining Co. Ltd., which holds 55% of Teck’s class A shares.
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