PRO FORMA FINANCIALS PUBLISHED FOR IPO OF CP RAILWAY, CP SHIPS

PRO FORMA FINANCIALS PUBLISHED FOR IPO OF CP RAILWAY, CP SHIPS    Canadian Pacific, the conglomerate that aims to list CP Railway and CP Ships as separate publicly listed companies, has published figures on the expected proforma capitalization of its operating companies.
   To provide additional information to investors, Canadian Pacific announced on Wednesday further details relating to its proposed reorganization.
   Inter-company settlements were determined with the intention to capitalize each company “with amounts of debt and equity that are appropriate for its growth prospects and the industry in which it operates,” the Canadian Pacific parent group said.
   Canadian Pacific expects to mail to shareholders an information circular in mid-August containing proforma financial statements dated June 30, 2001.
   The group expects that Canadian Pacific Railway will have a book equity of approximately C$3 billion ($2 billion) and a net-debt-to-capital ratio of approximately 50 percent.
   Canadian Pacific anticipates that CP Ships’ book equity will be in the order of C$1.7 billion ($1.1 billion), with a net-debt-to-capital ratio, before consideration of operating leases, of less than 10 percent.
   While these capitalizations reflect Canadian Pacific’s current intentions with respect to spinning off its businesses, its plan “could be modified in response to market conditions as the process continues to unfold,” the Canadian group said.
   Canadian Pacific had announced the reorganization and public listing plan in February, saying it was designed to unlock the current value of its businesses and strengthen their ability to pursue success as independent companies.
   Canadian Pacific’s planned timetable is to send details to shareholders in mid-August, for a meeting on or about Sept. 26.