Teck Resources Receives All Regulatory Approvals For Sale Of Steelmaking Coal Business To Glencore

(RTTNews) - Teck Resources Limited (TECK, TECK_A.TO, TECK_B.TO) said that the sale of its remaining 77% interest in the steelmaking coal business, Elk Valley Resources or "EVR", to Glencore plc (GLCNF.PK, GLNCY.PK, GLEN.L) has now received all necessary regulatory approvals.

Glencore said in November 2023 that it agreed to acquire a 77 percent effective interest in Teck Resources Limited's steelmaking coal business, Elk Valley Resources or EVR, for $6.93 billion in cash.

The transaction is now expected to close on July 11.

Teck expects to receive total cash proceeds of US$6.9 billion or C$9.5 billion from the sale of the 77% interest in EVR, excluding closing adjustments.

Teck plans to allocate proceeds from the sale of the steelmaking coal business primarily through cash returns to shareholders and debt reduction.

Teck will repurchase up to US$2.0 billion or C$2.75 billion of Class B subordinate voting shares. It announced US$2.6 billion cash return to shareholders following 100% sale of EVR.

Teck will execute a debt reduction program of up to US$2.0 billion, including the cash tender offer separately announced to purchase US$1.25 billion aggregate principal amount of Teck's outstanding public notes.

Meanwhile, Teck expects to double its copper production to approximately 600,000 tonnes per year.

In a separate press release, Teck Resources announced the commencement of six separate offers to purchase for cash up to US$1.25 billion aggregate principal amount of its outstanding notes of the series.

The Offers will expire at 5:00 p.m. (Eastern time) on July 15, 2024, unless extended or earlier terminated.

Upon the terms and subject to the conditions, Holders whose Notes are accepted for purchase in the Offers will receive the applicable Total Consideration for each US$1,000 principal amount of such Notes in cash on the applicable Settlement Date.