Fording sells to Teck Cominco |
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By: Stockhouse Inc. Posted: 2008-07-30 06:07:30 |
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Stockhouse reports that Fording Canadian Coal Trust ("Fording") (TSX: FDG.UN) (NYSE: FDG) today announced that it has entered into an agreement to sell all of its assets to Teck Cominco Limited. Fording unitholders will receive $93.76 per unit payable in a combination of US$82.00 cash and 0.245 of a Teck Cominco Class B subordinate voting share ("Teck Cominco Shares") per Fording unit (All amounts in Canadian dollars unless otherwise noted). The Transaction is structured as a sale of assets by Fording and a subsequent distribution to Fording unitholders of the Unit Proceeds.
The demand to for energy has increased the value of coal assets and the industry has been reporting strong results. The coal industry is seeing more activity on the mergers and acquisitions front as larger players seek to consolidate their reserves in front of strong demand. On July 16, 2008 Alpha Natural Resources (NYSE: ANR) announced merger agreement with Cleveland Cliffs (NYSE:CLF). Industry fundamentals could support more buyout activity in the industry. |
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