Enerplus Resources Fund and Focus Energy Trust announce that the Plan of Arrangement (the “Arrangement”) related to the strategic merger of Enerplus and Focus was approved today at the Special Meeting of Focus Unitholders, with 99.8 percent of the aggregate votes cast by Focus Unitholders and holders of Focus Limited Partnership Class B units ("Focus Exchangeable LP Units") at the Special Meeting cast in favour of the Arrangement. The Alberta Court of Queen’s Bench also granted the Final Order required in connection with the Arrangement. Subject to satisfaction of standard closing conditions, the combination of Focus and Enerplus is expected to become effective on February 13, 2008.
Under the Arrangement, Focus Unitholders will receive 0.425 of an Enerplus trust unit for each Focus trust unit exchanged. Holders of Focus Exchangeable LP Units will not exchange their Focus Exchangeable LP Units for Enerplus trust units pursuant to the Arrangement, but following the Arrangement, the Focus Exchangeable LP Units will be exchangeable for Enerplus trust units on the basis of 0.425 of an Enerplus trust unit. The voting rights attached to and cash distributions made on the Focus Exchangeable LP Units will be similarly adjusted in accordance with the exchange ratio. On completion of the combination, current Enerplus unitholders will own approximately 79 percent and former Focus securityholders will own approximately 21 percent of the combined trust. This transaction is expected to be tax-deferred for Canadian resident Focus unitholders although they were permitted to elect to participate in the transaction on a taxable basis for Canadian federal income tax purposes.
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