BPET.L Regulatory News (BPET)

5 Sep 2007 07:01

F&C Private Equity Trust PLC05 September 2007 Embargoed for release until 7.00am on 5th September 2007 F&C Private Equity Trust announces the sale of its interest in the Dakota,Minnesota & Eastern Railroad Corporation F&C Private Equity Trust ("F&CPET") is pleased to announce it has entered intoan agreement for the sale of its interest in the Dakota, Minnesota & EasternRailroad Corporation ("DM&E") in a transaction which will merge DM&E with theCanadian Pacific Railway. F&CPET through its predecessor, Scottish EasternInvestment Trust, originally invested in DM&E over 20 years ago. DM&E operates 2500 miles of track in the Midwest USA and has been pursuing astrategy to become the third rail carrier that is needed in Wyoming's PowderRiver Basin. The Powder River Basin is North America's largest and most rapidlygrowing source of low-cost, low sulphur coal as well as the largest single railmarket. The transaction is expected close in the next 30 to 45 days. The total pricebeing paid for DM&E is $1.48 billion payable at closing with future contingentpayments of up to a further $1.0 billion payable if certain performancecriteria, relating to the development of the Powder River Basin project, are metprior to December 31st 2025. F&CPET's investment was valued at £12.1m at 31st March 2007 and has been writtenup to £22.6m reflecting the estimated initial net consideration. No value hasbeen ascribed to the deferred consideration, given the conditional nature of theproceeds. The increase in the valuation from the initial consideration represents anuplift in the NAV of 9.9p per A share and 5.4p per B share. F&C Private Equity Trust will release its interim results and updated NAV on18th September 2007. For Further Information: Hamish Mair 0131 718 1184F&C Asset Management plc This information is provided by RNS The company news service from the London Stock Exchange