Drax Group Limited: Indicative Approach Received

Drax Group Limited: Indicative Approach Received

SELBY, England, September 13/PRNewswire/ -- The Board of Drax Group Limited ("Drax" or "the Company")
announces that it received on 12 September an indicative approach from a
consortium comprising Constellation Energy Group, Inc and Perry Capital LLC
regarding a possible cash offer for Drax representing an enterprise value of
GBP1.9 billion. The proposal is subject to a number of conditions, including
due diligence and financing.

The Board is considering this approach and will provide an update in due
course. The Board notes that the indicative value proposed is below the
enterprise value of the Company as implied by current trading of its A2/A3
debt and equity.

Consistent with its previously stated intention, the Board
will consider any proposal which it believes will deliver fair value to its
shareholders, whilst continuing with preparations for a refinancing and
listing. The next important step in the refinancing and listing process,
being the posting of a document to investors seeking irrevocable undertakings
from shareholders by mid-October, will commence next week.

Deutsche Bank AG London Branch ('Deutsche Bank'), which is
regulated by the Financial Services Authority for the conduct of designated
investment business in the United Kingdom, is acting for Drax in connection
with the matters described herein and no-one else and will not be responsible
to anyone other than Drax for providing the protections afforded to customers
of Deutsche Bank, nor for providing advice in relation to the matters
described herein.

Notes to Editors

1. The Company intends to seek irrevocable undertakings from
its shareholders to vote in favour of the proposed refinancing and listing at
the relevant court meeting for the proposed Drax Group Limited scheme of
arrangement. Similar undertakings will also be sought from the A2 Lenders and
the A3 Lenders in relation to the proposed InPower 2 Limited schemes of
arrangement.

Source: Drax Group Limited

Gordon Horsfield (Chairman), Gordon Boyd (Finance Director), Andrew Jones (Head of Corporate Affairs), Drax Power Limited +44-(0)1757-618381. Mark Cross, Alan Brown, Deutsche Bank, (Financial Adviser to Drax Group Limited) +44-(0)20-7545-8000. David Trenchard, Peter Hewer, Tulchan Communications +44-(0)20-7353-4200

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Profile: Utilities