Teck Resources urges shareholders to vote for pending separation

Teck Resources (TECK) issued a letter to shareholders reaffirming the rationale for its pending separation and responding to Glencore (GLNCY), which read in part, "A vote for the separation is a vote to create two world-class, pure play mining companies, providing both unparalleled exposure to a premier base metals platform and an attractive opportunity to remain invested in a high-quality, high-margin steelmaking coal business. Voting FOR the pending separation opens the door to value maximizing opportunities and provides certainty with no execution risk. In fact, separation can be completed in as little as six weeks from today and the separation – and the further path to value – has the clear support of our class A shareholders. Glencore’s proposal is not a realistic or viable option. Its latest presentation and open letter include no changes from its previous offers, which we have carefully reviewed and rejected. This is a distraction – a transparent and opportunistic attempt to disrupt our separation plan with an ill-defined and highly uncertain proposal. Importantly, Glencore admits that they are uniquely positioned to make an offer for Teck in its current form; the pending separation will correct that by opening up a wider range of opportunities for value enhancement…Now is not the right time to pursue a transaction with Glencore. We fully believe that Glencore’s proposals are nothing more than an opportunistic attempt to interfere with the vote at Teck’s annual and special meeting of shareholders on April 26th to their benefit and to the detriment of our shareholders. The choice for shareholders is clear: vote FOR Teck’s separation plan to create the world’s pre-eminent, pure-play base metals company with a greater array of value creating opportunities."