Teck Confirms Glencore’s is One of a Number of Proposals Under Consideration Related to Steelmaking Coal Business
12 June 2023 - 4:15PM
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK)
(“Teck”) today commented on its previously announced engagement
with several parties that have submitted unsolicited indications of
interest regarding various forms of potential transactions
involving Teck’s steelmaking coal business.
Teck’s Board of Directors and independent Special Committee, in
accordance with its fiduciary duties to shareholders, are
continuing to consider and evaluate all actionable, value-accretive
proposals received relating to Teck’s steelmaking coal business to
determine whether they are in the best interests of Teck’s
shareholders and all stakeholders.
As part of this ongoing review, Teck confirms it is engaging
with Glencore around their proposal regarding the steelmaking coal
business. The proposal is preliminary in detail, conditional and
non-binding.
The high degree of interest expressed by a wide range of parties
underscores the value of Teck’s high-margin, long-life steelmaking
coal assets. Teck intends to continue to engage with all parties
that have indicated interest to identify a path that realizes value
for shareholders while ensuring continued responsible operations in
the Elk Valley to support a sustainable future for the benefit of
employees, local communities and Indigenous Peoples.
There can be no assurance that any transaction will result from
the engagement between Teck and the various interested
counterparties regarding the steelmaking coal business. Teck does
not intend to provide any further updates until it determines that
a disclosure is required.
AdvisorsBarclays Capital Canada Inc., Ardea
Partners LP, and TD Securities Inc. 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.
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.
Forward-Looking StatementsThis news release
contains certain information which constitutes “forward-looking
statements” and “forward-looking information” within the meaning of
applicable Canadian or 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; Teck’s
expectations regarding the impacts of any such transaction in terms
of creating value for shareholders and impact on other
stakeholders; 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 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 StannellPublic Relations
Manager604.699.4368chris.stannell@teck.com
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