ELTA.L Regulatory News (ELTA)

5 Sep 2007 07:02

Electra Private Equity PLC05 September 2007 Electra Private Equity PLC Press Release Electra announces the sale of its interest inDakota, Minnesota & Eastern Railroad Corporation Electra Private Equity PLC ("Electra") is pleased to announce it has enteredinto an agreement for the sale of its interest in Dakota, Minnesota & EasternRailroad Corporation ("DM&E") to a subsidiary of Canadian Pacific RailwayCompany ("Canadian"). Electra 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 in terms of volume. Consideration payable to Electra and the other selling shareholders in DM&Econsists of a total US $1.48 billion cash payment at closing, expected at theend of September 2007, by Canadian with future contingency payments of up to US$350 million with the start of construction on the Powder River Basin ExpansionProject ("PRBEP") and up to US $707 million if certain PRBEP coal tonnagethresholds are exceeded. Initial net proceeds to Electra at closing are estimated, subject to exchangerate movements, to give rise to an increase in Electra's valuation of DM&Eequivalent to 26p per Electra share. This increase excludes any valueattributable to the future contingency payments detailed above. For further information please contact: Hugh Mumford, Electra Partners LLP 020 7214 4200 Nick Miles, M: Communications 020 7153 1535 This information is provided by RNS The company news service from the London Stock Exchange