01:44 PM EDT, 07/08/2024 (MT Newswires) -- Deutsche Bank on Monday maintained its buy rating on the shares of Teck Resources ( TECK ) and its US$58.00 price target after the company completed the sale of its metallurgical coal business to Glencore for US$6.9 billion.

"Teck has announced that the sale of its remaining 77% interest in its steel making coal business, EVR, to Glencore has received all necessary regulatory approvals and closing is expected on 11 July. Teck will receive US$6.9bn (CAD9.5bn) in gross cash proceeds and US$6.1bn net after $750m in tax (there could be some upside

risk to this number following recent tax changes in Canada). The company has also allocated the proceeds between shareholder returns, debt reduction and future growth, with the shareholder return surprising to the upside. The cash return to shareholders totals US$2.2bn (CAD3bn), split between a US$2.0bn (CAD2.75bn)

buyback (we assume over 18 months) and a dividend of US$182m (CAD250m /CAD0.50/sh) to be paid on September 27. The total cash return to shareholders from the entire disposal of EVR totals US$2.6bn (CAD3.5bn), including the CAD500m buyback announced in January in relation to the US$1.3bn sale of 23% to Nippon

and Posco," the investment bank noted.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 66.75, Change: -1.99, Percent Change: -2.89