The Ontario Teachers’ Pension Plan has agreed to tender its 41.2% interest in Royal Utilities Income Fund to resource firm Sherritt International.

Sherritt, which holds a minority stake in the income trust, is offering to take the company private for $700 million, or $12.25 per unit—a 22% premium to Monday’s closing price.

Unitholders will receive a mix of cash and Sherritt stock subject to a maximum of $225 million to be paid in cash.

Royal Utilities went public in June 2006, a few months before the federal government announced it would begin taxing income trusts.

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