Teck Resources Limited surprised the markets by announcing Wednesday morning that it has withdrawn its plan to separate its coal and metals business into two separate entities, just hours ahead of a shareholder vote on the proposal.
“Our plan going forward is to pursue a simpler and more direct separation, which is the best path to unlock the full value of Teck for our shareholders,” Teck Resources CEO Jonathan Price said in a statement.
Teck has been trying to thwart an unsolicited takeover attempt by Swiss commodities trader Glencore.
Shares of Teck Resources climbed as much as 7% in pre-market trading Wednesday following the company’s surprise announcement.
As well, Teck revealed unaudited financial results for its first quarter of 2023, showing revenue of $3.79 billion, down from $4.62 billion a year earlier.
The Vancouver-based mining company also earned $1.78 per diluted share on an adjusted basis in its latest quarter, down from an adjusted profit of $2.96 per diluted share during the same period last year.
Contact Sean at sean@proactiveinvestors.com