Drax Group PLC Update on Potential Acquisition of Pellet Plants (2834Y)

TIDMDRX

RNS Number : 2834Y

Drax Group PLC

01 March 2017

1 March 2017

DRAX GROUP PLC

(Symbol: DRX)

Update on Process for Potential Acquisition of Distressed Pellet Plants

Drax has been notified that the sellers of Texas Pellets(1) and Louisiana Pellets(1) have delayed the processes(2) for the sale out of bankruptcy of these assets, originally scheduled for 1 and 2 March. It is expected that these processes will continue during March.

Drax previously notified the market of its participation in these processes and had submitted initial cash bids for the operating assets of Texas Pellets and Louisiana Pellets.

Drax remains an interested party in the acquisition of these assets.

Enquiries:

Drax Investor Relations: Mark Strafford

[phone]

Media:

Drax External Communications: Paul Hodgson

[phone]

Website: www.drax.com

Notes:

(1) Texas Pellets, Inc. and German Pellets Texas, LLC (collectively "Texas Pellets") is the owner and developer of a wood biomass pellet manufacturing facility located in Woodville, Texas and leases a five-silo pellet storage facility located at Port Arthur, Texas.

Louisiana Pellets, Inc. and German Pellets Louisiana, LLC (collectively "Louisiana Pellets") is the owner and developer of a wood biomass pellet manufacturing facility located in Urania, Louisiana.

(2) Texas Pellets and Louisiana Pellets are currently going through "Chapter 11" bankruptcy processes in the United States and are seeking purchasers for substantially all of their assets.

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This information is provided by RNS

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March 01, 2017 12:27 ET (17:27 GMT)