Teck Resources reaffirms rationale for pending separation

Teck Resources reaffirmed the rationale for its pending separation "as the optimal pathway to maximize shareholder value with the greatest certainty." Teck will publish an investor presentation and host a conference call, April 10 at 5:00 a.m. PT / 8:00 a.m. ET with CEO Jonathan Price. The company said, "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, 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 (GLNCY) 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."