Teck Engaging with Multiple Counterparties Regarding Interest in its Steelmaking Coal Business
June 06 2023 - 9:10AM
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK)
(“Teck”) today confirmed that it has received a number of inbound
indications of interest regarding various forms of potential
transactions involving Teck’s steelmaking coal business.
As previously announced, Teck is pursuing a separation of its
base metals and steelmaking coal businesses. Teck’s Board of
Directors and independent Special Committee, with the support of
their financial and legal advisors, will continue to consider and
evaluate all actionable, value-accretive proposals received
relating to its steelmaking coal business to determine whether they
are in the best interests of Teck’s shareholders and other
stakeholders.
“Teck’s Board will appropriately consider and evaluate any
proposal that can unlock the tremendous potential of Teck’s premium
businesses and portfolio of high-quality assets as part of our
ongoing work to continue building a great mining business and
realize value for shareholders,” said Sheila Murray, Chair of the
Board. “We are also resolved to identify a path that ensures
continued responsible operations in the Elk Valley and supports a
sustainable future for the benefit of employees, local communities
and Indigenous Peoples.”
“There is widespread recognition in the market today of the
value of our high-margin, long-life steelmaking coal assets, which
has, in turn, generated considerable interest from various
parties,” said Jonathan Price, CEO. “Our focus on separation is to
unlock the full potential of our unparalleled copper growth
business and create significant value and opportunity for our
shareholders and all stakeholders.”
There can be no assurance that any transaction or other
strategic outcome will result from the conversations Teck is having
with various interested counterparties regarding the steelmaking
coal business. Teck does not intend to provide any update until it
determines that a disclosure is required.
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.
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 and U.S.
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
plans and the potential for transactions involving Teck’s
steelmaking coal business and the separation of Teck’s base metals
and steelmaking coal businesses; Teck’s expectations regarding the
impacts of any such transaction in terms of creating value for
shareholders; statements regarding unlocking the full potential of
Teck’s copper growth business; 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: terms on which parties are prepared
to engage on a transaction; receipt of regulatory and other
approvals that may be required for any separation or other
transaction; market factors such as commodity prices and general
economic conditions; changes in currency and exchange rates; and
other factors impacting steelmaking coal, copper and base metals
markets and the global financial system. Additional risks and
uncertainties, and related assumptions and factor that can cause
actual results to vary, including but not limited to with respect
to Teck’s copper growth portfolio, can be found in our Annual
Information Form dated February 21, 2023 under “Risk Factors”.
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.
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.
Investor Contact:Fraser PhillipsSenior Vice
President, Investor Relations & Strategic
Analysis604.699.4621fraser.phillips@teck.com
Media Contact:Chris StannellPublic Relations
Manager604.699.4368chris.stannell@teck.com
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