Teck Resources seeking sale of stake in $8B coal business – Bloomberg (NYSE:TECK)

Teck Resources seeking sale of stake in $8B coal business – Bloomberg (NYSE:TECK)

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Teck Resources (TECK +1.1%) is exploring the sale of a ~10% stake in its Canadian metallurgical coal business, approaching Arch Resources (ARCH -0.6%) among others, as it seeks to take advantage of surging coal prices, Bloomberg reports.

Teck’s coal business could be valued at ~$8B, which could be pushed higher given rising demand for the commodity, according to the report.

The company produced more than 21M metric tons of met coal in 2020 from four locations in western Canada, accounting for 35% of its gross profit.

Bloomberg first reported in September that Teck was considering a sale or spinoff of its met coal business.

Originally Posted on: https://seekingalpha.com/news/3802720-teck-resources-seeking-sale-of-stake-in-8b-coal-business-bloomberg?source=feed_tag_commodities
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