Structure has long made Canadian miner immune to large takeover deals
The vote to end the dual-share structure is significant: The Keevil family, which has been involved with the firm for six decades, has long controlled Teck through majority ownership of Class A shares, which carry more voting control than the more common Class B shares. Sumitomo Metal Mining Co. also owns Class A shares through a vehicle with the Keevils. China Investment Corp. is the largest shareholder of the B shares, according to data compiled by Bloomberg.
“To me, the reason Teck has probably stayed together as long as it has is really due to that dual share structure that essentially acts as a poison pill to M&A,” Connor Mackay, PI Financial Corp.’s base metals analyst, said in a phone interview. Keevil said earlier this month that he’d support a transaction “with the right partner, on the right terms” after the company separated its base metals business from its coal assets.
Teck withdrew its separation plan early on April 26, citing feedback from some shareholders that wanted “a more direct approach to separation,” according to a statement. The company’s focus now is to figure out how to undertake a simpler separation of those businesses, chief executive Jonathan Price told reporters after the meeting.
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