Teck Cominco Metals, Ltd., a producer of zinc and zinc alloys, has acquired 16.65 million units, representing a 11.25% stake in Fording Canadian Coal Trust, an open-ended mutual fund trust, from Ontario Teachers Pension Plan, a private equity investment firm, for CAD599.4 million ($599.16 million) in cash.
Announcement (September 24, 2007)
Teck Cominco Metals, Ltd. has entered into an agreement to acquire 16.65 million units of Fording Canadian Coal Trust, from Ontario Teachers Pension Plan, for a cash consideration of CAD599.4 million ($599.16 million), or CAD$36 ($35.98) per unit. The transaction is expected to close on October 1, 2007.
If prior to July 31, 2008, Teck Cominco or any of its affiliates makes an offer or announces an intention to acquire more than 50% of the outstanding Fording units, which transaction is subsequently completed, or sells Fording units, in either case at a price in excess of CAD$36.00 ($35.98) per unit, Teck Cominco will pay Teachers such excess for the units that Teck Cominco has today acquired from Teachers.
Following the acquisition, Teck Cominco will hold directly and indirectly, approximately 19.95% of the outstanding units of Fording.
Stikeman Elliott LLP served as advisor to Teck Cominco.