Teck Reaffirms Benefits of Pending Separation
April 10 2023 - 6:30AM
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) today
reaffirmed the strong rationale for its pending separation as the
optimal pathway to maximize shareholder value with the greatest
certainty.
Teck will publish an investor presentation at
www.teck.com/separation and host a conference call today, April 10
at 5:00 a.m. PT / 8:00 a.m. ET with CEO Jonathan Price. Dial in
details are included below.
Presentation highlights:
- Teck’s
pending separation provides shareholders with a greater set of
options to maximize value. Teck shareholders will
receive shares in two world-class, pure-play companies providing
investors with choice: Teck Metals, a premier, growth-oriented
producer of energy transition metals and Elk Valley Resources
(“EVR”), a responsible steelmaking coal business with top-tier
margins. There is significant value to be realized by Teck
shareholders from, and following, the separation, which will open a
spectrum of opportunities for both Teck Metals and EVR.
- Teck’s
pending separation minimizes execution risk. Teck’s plan
provides a responsible exit from steelmaking coal at fair value and
in the best interests of all stakeholders. Further, Teck’s
separation has no competition or regulatory hurdles, with
completion expected by the end of May.
- Glencore’s
proposal is not actionable and has been unanimously rejected by
Teck’s Board of Directors because:
- It would reduce Teck
shareholders exposure to copper and introduce exposure to thermal
coal and oil trading.
- Glencore did not
present a coherent plan for its proposed coal company. There is no
market for shares of a massive new thermal coal-focused
company.
- It would expose Teck
shareholders to significant jurisdictional, ESG and execution
risk.
- The fundamental
flaws of Glencore’s proposal make it a non-starter and Glencore’s
track record makes it an unsuitable acquirer.
- Voting for
the pending separation is the only option to unlock Teck’s full
value potential. The choice is clear: either vote for
a separation that creates two companies with a broad spectrum of
opportunities to maximize value, or vote to maintain the status
quo.
Teck’s Board of Directors continues to unanimously recommend
that shareholders approve the previously announced reorganization
of Teck’s business and the previously announced proposal to
introduce a six-year sunset for the multiple voting rights attached
to the Class A common shares of Teck, among other items of
business, at the annual and special meeting of shareholders on
April 26, 2023.
To view the management proxy circular providing more information
on these proposals click here. For instructions on voting for Teck
shareholders, go to www.teckagsm.com.
AdvisorsBarclays Capital Canada Inc. and Ardea
Partners LP are serving as financial advisors to Teck. Stikeman
Elliott LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP
are acting as legal advisors.
BMO Capital Markets, Goldman Sachs & Co. LLC, and Origin
Merchant Partners are serving as financial advisors to the Special
Committee and Blake, Cassels & Graydon LLP and Sullivan &
Cromwell LLP are acting as legal advisors to the Special
Committee.
Investor Conference Call and InformationA
conference call to discuss the Separation will be held as
follows:
Date: |
Monday, April 10, 2023 |
Time: |
5:00 a.m. PT / 8:00 a.m. ET |
Dial In for conference call: |
416.915.3239 or 1.800.319.4610 |
|
Quote “Teck Resources’, to join the call |
Alternate, quick access to the call: |
Call Me |
|
|
An archive of the conference call will be available at teck.com
within 24 hours.
About TeckAs one of Canada’s leading mining
companies, Teck is committed to responsible mining and mineral
development with major business units focused on copper, zinc, and
steelmaking coal. Copper, zinc and high-quality steelmaking coal
are required for the transition to a low-carbon world.
Headquartered in Vancouver, Canada, Teck’s shares are listed on the
Toronto Stock Exchange under the symbols TECK.A and TECK.B and the
New York Stock Exchange under the symbol TECK. Learn more about
Teck at www.teck.com or follow @TeckResources.
Cautionary Note Regarding Forward-Looking
StatementsThis news release contains certain information
which constitutes “forward-looking statements” and “forward-looking
information” within the meaning of applicable Canadian securities
laws. Any statements that are contained in this news release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as “may”, “should”, “anticipate”,
“expect”, “potential”, “believe”, “intend” or the negative of these
terms and similar expressions. Forward-looking statements in this
news release include, but are not limited to: statements regarding
Teck’s planned separation transaction, including the timing
thereof, and Teck’s expectations regarding the impacts of any such
transaction in terms of creating value for shareholders; statements
related to anticipated risks of Glencore’s proposal, including with
respect to execution, timing and exposure to thermal coal and oil
trading, and Teck’s assessment thereof as compared to its own
planned separation transaction; statements related to the
opportunity for future transactions involving Teck Metals or EVR;
and statements with respect to Teck’s business and assets and its
strategy going forward. Readers are cautioned not to place undue
reliance on forward-looking statements. Forward-looking statements
involve known and unknown risks and uncertainties, most of which
are beyond the Teck’s control. Several factors could cause actual
results to differ materially from those expressed in the
forward-looking statements, including, but not limited to: future
actions taken by Glencore in connection with its unsolicited
proposal; fluctuations in supply and demand in steelmaking coal,
base metals and specialty metals markets; changes in competitive
pressures, including pricing pressures; timing and receipt of
requisite shareholder and court approvals; the recent global
banking crisis and conditions and changes in credit markets;
changes in capital markets; changes in currency and exchange rates;
changes in and the effects of, government policy and regulations;
and earnings, exchange rates and the decisions of taxing
authorities, all of which could affect effective tax rates.
Additional risks and uncertainties can be found in our Annual
Information Form dated February 21, 2023 under “Risk Factors” and
our management information circular in respect of our annual and
special meeting of shareholders on April 26, 2023, each filed under
our profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov),
and on Teck’s website (www.teck.com). Should one or more of the
risks or uncertainties underlying these forward-looking statements
materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results, performance or
achievements could vary materially from those expressed or implied
by the forward-looking statements.
The forward-looking statements contained herein are made as of
the date of this release and, other than as required by applicable
securities laws, Teck does not assume any obligation to update or
revise them to reflect new events or circumstances. The
forward-looking statements contained in this release are expressly
qualified by this cautionary statement.
Investor Contact:Fraser PhillipsSenior Vice
President, Investor Relations & Strategic
Analysis604.699.4621fraser.phillips@teck.com
Media Contact:Chris Stannell Public Relations
Manager604.699.4368chris.stannell@teck.com
Teck Resources (TSX:TECK.A)
Historical Stock Chart
From Jun 2024 to Jul 2024
Teck Resources (TSX:TECK.A)
Historical Stock Chart
From Jul 2023 to Jul 2024