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.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
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