Disposal

RNS Number:3106D
F&C Private Equity Trust PLC
05 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 into
an agreement for the sale of its interest in the Dakota, Minnesota & Eastern
Railroad Corporation ("DM&E") in a transaction which will merge DM&E with the
Canadian Pacific Railway. F&CPET through its predecessor, Scottish Eastern
Investment 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 a
strategy to become the third rail carrier that is needed in Wyoming's Powder
River Basin. The Powder River Basin is North America's largest and most rapidly
growing source of low-cost, low sulphur coal as well as the largest single rail
market.

The transaction is expected close in the next 30 to 45 days. The total price
being paid for DM&E is $1.48 billion payable at closing with future contingent
payments of up to a further $1.0 billion payable if certain performance
criteria, relating to the development of the Powder River Basin project, are met
prior to December 31st 2025.

F&CPET's investment was valued at #12.1m at 31st March 2007 and has been written
up to #22.6m reflecting the estimated initial net consideration. No value has
been ascribed to the deferred consideration, given the conditional nature of the
proceeds.

The increase in the valuation from the initial consideration represents an
uplift 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 on
18th September 2007.

For Further Information:

Hamish Mair                              0131 718 1184
F&C Asset Management plc



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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