Proactive Investors - Teck Resources (TSX:TECKa) Limited surprised the markets by announcing Wednesday morning that it has withdrawn its plan to separate its coal and metals business into two separate entities, just hours ahead of a shareholder vote on the proposal.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 (LON:GLEN).
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.