(Grupo TMM issued the following news release on August 29.)
MEXICO CITY — Grupo TMM, S.A. announced today that on August 27, 2003, its subsidiary, TFM, S.A. de C.V. (TFM), gave notice to Kansas City Southern (KCS) of the exercise of its right to repurchase shares representing an aggregate 51 percent interest in Mexrail, Inc. (“Mexrail”) that were sold to KCS in May 2003. The shares are currently held in a voting trust pending the receipt of approval of the United States Surface Transportation Board of KCS’s application to assume control of Mexrail.
Under the terms of the Stock Purchase Agreement entered into on April 15 2003, TFM, acting through its Chairman, has the unilateral right to repurchase the shares of Mexrail. The purchase price for the shares is $32,680,000 which is the same amount received by TFM in May 2003 upon closing of the sale of the shares to KCS, and will be funded out of TFM’s existing cash balances.
Upon completion of the repurchase, which the agreement provides is to occur on September 4, 2003, the fifth business day after exercise of the repurchase right, TFM will again own 100 percent of Mexrail.
Headquartered in Mexico City, Grupo TMM is a Latin American multimodal transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services. Grupo TMM also has a significant interest in TFM, which operates Mexico’s Northeast railway and carries over 40 percent of the country’s rail cargo. Grupo TMM’s web site address is www.grupotmm.com and TFM’s web site is www.tfm.com.mx.