Teck has confirmed that it is in receipt of “a number of inbound indications of interest” from potential buyers for the planned sale of its steel coal business arm.
Teck, which is seeking to separate its coal division from its base metals division, did not identify any of the involved parties but said it and its board, as well as an independent special committee, are considering and evaluating all “actionable, value-accretive proposals” to determine if they are in the best interest of Teck.
“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 board chair Sheila Murray.
“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.”
CEO Jonathan Price said the recognition of its assets in the market has led to the considerable interest.
“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,” he added.
Teck noted there is no assurance any transaction or other strategic outcome will result from the conversations. It is being advised by Barclays Capital Canada and Ardea Partners (financial) and Stikeman Elliott LLP and Paul, Weiss, Rifkind, Wharton & Garrison (legal).