The Sherritt Coal Partnership has announced that it has acquired all of the outstanding units and debentures of the Luscar Coal Income Fund (LUS.UN-T).
Sherritt International (S-T) and its partner, the Ontario Teachers’ Pension Plan, first announced their takeover bid for Luscar in February. By late May, more than 95% of the fund’s units and debentures had been tendered to an amended takeover bid.
Under the amended offer, Luscar’s unit holders could elect to receive either $4 in cash or one share of Sherritt for each unit held. Sherritt limited the share issuance option to 25 million shares. Debenture holders received $1,050 in cash per $1,000 principal amount of debentures, plus accrued and unpaid interest.
On May 11, the partnership took up and paid for units and debentures that were tendered to the offer, and issued about 21.8 million Sherritt shares.
The partnership has now acquired all of the units and debentures not already tendered to the offer by depositing funds with CIBC Mellon Trust Company (as depository) on behalf of the trustees of the fund.
Holders of non-tendered units or debentures can elect to receive cash or shares under the same terms as the amended offer.
Sherritt has applied to delist the units and debentures from the Toronto Stock Exchange. The company is applying to securities regulators to obtain confirmation that the fund has ceased to be a reporting issuer.
The acquisition gives Sherritt control of 11 coal mines — mainly steam-coal and lignite producers in western Canada.
Luscar also has the Cheviot mine, a large coking-coal project which is under development in northern Alberta.
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