Teck Resources Ltd (TSX:TECK.B) saw its share spike 10% higher in Toronto as it responded to confirming market rumours, informing investors that it is mulling a spin-out of its steelmaking coal assets.
The company, in a stock market statement, said it is evaluating alternatives for its steelmaking coal business, including the possible spin-out of an interest in that business to its shareholders.
“Any transaction would be expected to create value for Teck’s shareholders and support continued benefits for communities and Indigenous Peoples in the areas where Teck operates,” the company said.
“No decision has been reached to proceed with a transaction and there can be no assurances that any transaction will eventuate.
“Teck does not intend to make any additional comments regarding this matter unless and until a formal decision has been reached.”
In Toronto, Teck stock climbed C$5.53 or 9.8% per share to trade at C$61.78.