Sherrit Coal - a joint venture between the C$73bn (£32bn) Ontario Teachers Pension Plan and Sherritt International - has declared victory in its take-over battle for the Luscar Coal Income Fund.
According to Sherrit Coal, 79.7m units - representing approximately 88% of the outstanding units - and 91.6m debentures - equal to approximately 91.6% of the outstanding Luscar debentures - have been tendered to Sherritt Coal's Amended Offer.
Additionally, Sherritt Coal has extended the deadline for its amended offer for the remaining Luscar units and debentures by 15 days. The new deadline will expire at midnight on Wednesday May 23, and will give unit and debenture holders who have not yet accepted the offer the opportunity to do so.
Luscar unitholders who have not yet accepted the amended offer can choose to receive either C$4.00 in cash or one share of Sherritt for each Luscar unit. Debenture holders who have not yet taken the amended offer can elect to receive C$1,050 cash per C$1,000 principal amount of debentures, plus interest.
Originally, Sherrit Coal had set a final deadline of April 30 for the Luscar Coal Income Fund to decide whether it would accept the take-over bid. At the time, Sherritt's chairman, Ian Delaney, said that Luscar should stop delaying and make a decision. Sherritt's offer is the only offer, he said. Luscar has not brought forward a superior proposal.
The Luscar Coal Income Fund is an open-ended trust which invests in the securities of Luscar, a Canadian coal producer. The Luscar fund has approximately 90.7 million Units outstanding.
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