Teck Engaging interest in Steelmaking Coal Business
Teck Resources Limited 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.
Barclays 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.