Teck Resources Ltd.TECK-B-T chief executive officer Jonathan Price expressed confidence its biggest B-shareholder, China Investment Corp. (CIC), will vote for the Canadian miner’s proposed split and not back Glencore’s GLNCY hostile takeover proposal, as he battles to correct misinformation that has seeped into the market.
Mr. Price disputed a Bloomberg news article on Friday that cited unnamed sources who claimed CIC was leaning toward voting down Teck’s split. The article, which did not carry a byline, also claimed that Glencore executives had already spoken with CIC executives about the matter.
“I spoke with CIC last night, and they’ve confirmed to me that they have not met with Glencore, and that the media reports are false,” Mr. Price said in an interview with The Globe and Mail.
Glencore declined to comment on whether it had met with CIC.
CIC did not respond to a request for comment.
So far, few B shareholders with significant stakes in Teck have made their positions clear on which way they will vote. British-based Egerton Capital last week told The Globe that it is intending to vote for Teck’s planned split. Egerton is the fifth-biggest B shareholder, holding approximately 11.4 million shares. Teck’s B shares carry a single vote, while the A shares controlled by the Keevil family carry 100 votes apiece.
Teck’s A and B shareholders will meet on April 26 to decide on whether to proceed with Teck’s planned split, which would separate the company into Teck Metals, which would hold its critical minerals mines, and Elk Valley Resources, which would hold its metallurgical coal assets.
At least two-thirds of votes cast in both classes of shares must be in favour for the split to go forward.
While Mr. Price said it would not be appropriate to speculate on what CIC will ultimately decide, he is optimistic that it will vote for Teck’s proposed split. CIC must first take the matter to its internal investment committee, after which it will decide.
“CIC has been a long-term shareholder of Teck. They’ve been with us since 2009. It’s a very open, collaborative relationship, and we look forward to continuing to work with them going forward,” Mr. Price said.
CIC first invested in Teck during the depths of the great financial crisis, paying $1.7-billion for a 17.5-per-cent equity stake. Teck was forced to raise cash from CIC, and in turn significantly dilute its investor base because it was having trouble meeting debt payments incurred owing to its top-of-the-market acquisition of Fording Canadian Coal Trust. Over the years, CIC has sold down a significant part of its holdings in Teck, and now holds 10.3 per cent. According to Refinitiv, the next-biggest B shareholder is United States fund manager Dodge and Cox, which holds a 5.3-per-cent stake.
Glencore is hoping that Teck shareholders will vote against the split as a sign that they are instead in favour of being acquired by the giant Swiss miner.
Glencore earlier this month offered US$23.1-billion to buy Teck, which amounted to a 22-per-cent premium to the Canadian miner’s market value. In rejecting the proposal, Teck has said any deal with Glencore would destroy shareholder value, expose the company to significant execution risk, and harm its environmental, social and corporate governance reputation.
If Glencore ends up acquiring Teck, it plans to split it in two, creating a giant coal company holding its thermal coal as well as Teck’s metallurgical coal assets, and another company housing the metals mines of both companies, along with Glencore’s energy trading assets.
Teck’s controlling A shareholder, Norman B. Keevil, who is staunchly against the Glencore approach, has called it the wrong deal, at the wrong time. Post-split, Teck Metals is expected to attract a lot more mergers-and-acquisitions interest from major mining companies because of its growing copper portfolio. Glencore is seen as one of the few suitors that would be interested in buying Teck currently, because of Teck’s heavy coal exposure.
“There are numerous mining industry parties who have their eyes on Teck and would be interested in partnering or investing in Teck Metals after it separates its base metals and steelmaking coal businesses,” Mr. Keevil said in a statement. “I would support a transaction, whether it be an operating partnership, merger, acquisition or sale – with the right partner.”
The Globe reported on Sunday that Teck has already been approached by more than half a dozen major miners, including Vale Ltd., Anglo American PLC and Freeport-McMoRan Inc., all of whom are interested in transactions with Teck Metals post-split.
“Given Teck’s wealth of expertise and its exposure to world-scale projects, I have no doubt all of us in the industry would be interested in partnering with them on growing Teck Metals post-spin-out, whether it be an operating partnership, merger, acquisition, or sale,” Robert Friedland, founder and executive co-chairman of Vancouver-based Ivanhoe Mines Ltd., said in a Twitter thread on Monday.
Ivanhoe operates the massive Kamoa-Kakula copper mine in the Democratic Republic of the Congo.
Mr. Keevil made it clear in an interview on Friday with The Globe that while his personal preference would be to see Teck remain in Canadian hands post-split, he would not block such a deal if the board, management and the majority of B shareholders are in favour, saying he will not swim against the tide.
Michael Goehring, CEO of the Mining Association of British Columbia, said in a statement on Monday that he hopes Teck will remain Canadian-owned, and came out firmly against a takeover of the company by Glencore, or any other foreign mining giant.
“The potential loss of BC’s long-standing mining champion and head office jobs in Vancouver is not in the best interests of British Columbians. We should be growing more local head office jobs in Vancouver, anchored by companies like Teck Resources, rather than see them go elsewhere,” he said.
“The company is vital to a variety of stakeholders, including thousands of workers, service and supply firms throughout the province, as well as Indigenous people and local communities.”
Teck’s history goes back to 1913, when Hughes Gold Mines Ltd. started up a gold mine in Teck Township on the shores of Kirkland Lake, Ont. The Keevil family have been in control of Teck since the late 1950s. Since that time, Teck has grown from a $25-million company to one worth more than $31-billion.
Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.
I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.
Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.
Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.
NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.
Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.
The air transportation increase, it further states, will be implemented over a longer period.
It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.
Gasoline and heating fuel prices approached $5 a litre at the start of this month.
Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.
“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.
The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.
“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.
Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.
Additionally, she said the government has donated $150,000 to the Norman Wells food bank.
In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.
It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.
This report by The Canadian Press was first published Oct. 21, 2024.
TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.
The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs
It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.
The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.
Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.
Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.
This report by The Canadian Press was first published Oct. 22, 2024.
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