A subsidiary of The Ontario Teachers’ Pension Plan is selling 16.65 million units of Fording Canadian Coal Trust to Teck Cominco for $599.4 million.
That works out to $36 per unit. The transaction is expected to close on Oct. 1.
Following the acquisition, Teck Cominco will own approximately 19.95% of Fording.
If prior to July 31, 2008, Teck Cominco or any of its affiliates makes an intention to acquire more than 50% of Fording or sells units in excess of $36, it will pay Teachers’ the excess amount for the 16.65 million units acquired from the pension fund.
At the end of 2006, Teachers’ owned 21.2 million units of Fording, making it the pension fund’s seventh-largest holding of corporate shares or units.
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