Canadian entrepreneur Pierre Lassonde is planning to buy a blocking stake in Elk Valley Resources, the steel-making coal unit to be spun off by Teck Resources Ltd, the Globe and Mail reported.
In an interview with the Canadian newspaper published on Friday, Lassonde expressed his interest in the soon-to-be divested unit of Teck, saying he wanted the company’s assets to “remain Canadian.”
Lassonde’s comments came after Teck Resources rejected an unsolicited takeover offer of $22.5 billion from Glencore Plc earlier this week, citing reluctance to expose its shareholders to thermal coal, oil, LNG and related sectors through the merger.
Lassonde would “love” to own up to 20% of Elk Valley, the report said, adding that he is planning to put together a group of investors who would buy up to C$300 million of the company’s shares, giving them a 10%-20% stake.
Teck Resources could not be reached immediately for comment. There was no contact information for Lassonde immediately available.
Under terms of a deal offered previously by minority shareholder Nippon Steel, the Elk Valley unit will have an enterprise value of C$11.5 billion. Teck Resources in February said it will receive an 87.5% interest in gross revenue royalty from the steel-making coal business through the transition period.
(By Rahat Sandhu; Editing by Leslie Adler)
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