Teck will pay an eligible dividend of CAN$0.15 per share on its outstanding Class A common shares and Class B subordinate voting shares on 31 December 2018, to shareholders of record at the close of business on 14 December 2018. This dividend represents the regular quarterly dividend of CAN$0.05 per share contemplated by Teck’s dividend policy and a supplemental dividend of CAN$0.10 per share.
In addition to the CAN$86 million aggregate dividend payment, the board has directed management to apply CAN$400 million to the repurchase of Class B subordinate voting shares under Teck’s previously announced normal course issuer bid programme, including the CAN$73.5 million of purchases made since that programme received regulatory approval in October. Taking into account the CAN$0.15 per share of base dividends already paid in 2018, this represents CAN$573 million in aggregate of dividends and share repurchases.
“Share repurchases under our normal course issuer bid are an appropriate use of capital at this time given the value inherent in our shares and the positive outlook for our business,” said Don Lindsay, President and CEO, Teck. “The process to bring a partner into our Quebrada Blanca Phase 2 copper development project is proceeding very well, and we expect that a transaction could be announced in December and closed in the first half of 2019.”
Teck’s normal course issuer bid programme authorises Teck to purchase up to 40 million Class B subordinate voting shares through the period ending 9 October 2019. Teck intends to purchase shares opportunistically over this period. The company will determine the timing of any purchases, and may repurchase fewer or a greater number of shares, subject to the requirements of the issuer bid programme.
Read the article online at: https://www.globalminingreview.com/finance-business/16112018/teck-announces-dividend-and-can400-million-share-buyback/