Teck Resources introduces six-year sunset for dual class share structure

Teck Resources announced a proposed six-year sunset for the multiple voting rights attached to the Class A common shares of Teck. Teck also announced a proposed reorganization to spin off its steelmaking coal business to shareholders. Teck will seek shareholder approval for the Dual Class Amendment and the Separation at its annual and special meeting of shareholders, expected to be held on or about April 26. On the effective date of the Dual Class Amendment, each Teck Class A common share will be acquired by Teck in exchange for one new Class A common share and 0.67 of a Class B subordinate voting share. The terms of the new Class A common shares will be identical to the current terms of Class A common shares, but will provide that, on the sixth anniversary of the effective date of the Dual Class Amendment, all new Class A common shares will automatically be exchanged for Class B subordinate voting shares, which will be renamed "common shares". If both transactions are approved, the Dual Class Amendment will be implemented before the implementation of the Separation. Class A common shares carry 100 votes per share and Class B subordinate voting shares carry 1 vote per share. The terms of the proposed Dual Class Amendment were negotiated with holders of a majority of the Class A common shares, Temagami Mining, SMM Resources and Dr. Norman Keevil by a Special Committee of independent directors of the Board. Teck expects that the Dual Class Amendment, if approved, will be completed in Q2. Collectively, Temagami, SMM and Dr. Keevil own or control 6,187,880 Class A common shares, representing approximately 79.7% of the aggregate voting rights attached to the Class A common shares, and 1,057,812 Class B subordinate voting shares, representing approximately 0.2% of the aggregate voting rights attached to the Class B subordinate voting shares.