Sumitomo Metal Mining supports Teck’s coal spinoff

Sumitomo Metal Mining said it will back Teck Resources in its planned spinoff of coal assets, confirming its earlier support in the face of an alternative takeover proposal from Glencore.

The Japanese company reiterated “its continuous support for Teckʼs plan to create two separate world-class independent companies,” it said in a statement. Teck has already said its main Class A shareholders – of which Sumitomo is one – had committed to voting in favour.

Teck is trying to get backing for a split of the company ahead of a shareholder vote on the proposal on April 26. Glencore has indicated it could raise its US$23 billion buyout bid and that it’s willing to put an offer direct to Teck’s shareholders.

Sumitomo directly holds 18.9 per cent of Teck’s Class A shares along with with the Keevil family, as well as 0.1 per cent of Class B shares. It also holds 49 per cent of Temagami Mining, which owns 55 per cent of Teck’s Class A shares. BLOOMBERG