Canadian businessman Pierre Lassonde plans to buy a stake in the spin-off coal company Teck Resources Ltd. to protect it from foreign acquisitionThe Globe and Mail reported.
This plan follows the Swiss company Glencore Plc. This week it said it was moving forward with its $23 billion proposal to buy Teckwithout being intimidated by the disapproval of both the mining company’s board of directors and majority shareholders
Lassonde, co-founder of Canada’s Franco-Nevada Gold Inc., is an ally of Teck’s majority shareholder, Norman Kievel Jr.as reported by The Globe and Mail. Lassonde plans to take a key position in a mining coal startup that Tech plans to spin off its copper and zinc business to keep in Canadian hands, he told the newspaper in an interview on Friday.
Teck has valued the spin-off company, Elk Valley Resources, at C$11.5 billion ($8,500) and will list on the Toronto Stock Exchange on June 6, according to the newspaper.
“I think Elk Valley is fantastic value in the long run and I want to keep these world-class Canadian assets,” Lasund told the newspaper.
Lasund was surprised that Elk Valley did not have a large Canadian shareholder who could block the takeover attempt and is now trying to assemble a group of investors to buy 10-20% of the company. He told the newspaper that he planned to put up more than a third of the money needed to buy up to C$300 million of Elk Valley shares.
Teck has four copper mines in South America and Canada that produced 270,000 tons last year. The company expects to double copper production after the second phase of its project in Quebrada Blanca, Chile, reaches full capacity later this year. It also owns the coke coal mines which are the crown jewel of its holdings.
These assets make Teck attractive to international miners looking for more industrial minerals to support the global transition to cleaner energy.
Kevil Jr., 85, founded the company with his father nearly six decades ago.