Fording Canadian Coal securityholders approve sale to Teck Cominco

By Lisa Kerner

Charlotte, N.C., Sept. 30 - Fording Canadian Coal Trust securityholders approved the plan of arrangement to sell the company's assets to Teck Cominco Ltd. at a special meeting on Tuesday.

Fording said 98.06% of the units voted at the meeting, excluding units held by Teck Cominco and people related to or affiliated with Teck Cominco, were voted in favor of the sale.

The Court of Queen's Bench of Alberta also issued its final order approving the plan of arrangement, a Fording news release said.

According to Fording, Teck Cominco entered into definitive credit agreements regarding the C$9.8 billion bridge and term loan facilities being used to finance the acquisition.

Fording and Teck Cominco expect the transaction to close on Oct. 30.

As a result of the securityholder approval, Fording's premium distribution and distribution reinvestment plan has been terminated.

It was previously reported that Fording's acquisition by Teck Cominco received clearance from Canadian, U.S., Turkish and South Korean competition authorities, a notice of non-opposition from the European Commission competition authority and confirmation from the Canadian Minister of Transport, Infrastructure and Communities that the transaction does not raise public interest issues.

Fording, located in Calgary, Alta., is an open-ended mutual fund trust and one of the largest royalty trusts in Canada.

Teck Cominco is a Vancouver, B.C.-based mining company.

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