TAKEOVER: HED: Takeovers Panel Decision

11 May 2010 10:33 am

HED 11/05/2010 TAKEOVER

REL: 1033 HRS Horizon Energy Distribution Limited

TAKEOVER: HED: Takeovers Panel Decision

11 May 2010

TAKEOVERS PANEL DECISION

On Monday 10 May 2010 the Takeovers Panel released its decision in respect of the meeting called by the Panel under Section 32 of the Takeovers Act 1993 to consider certain matters relating to Horizon's response to the partial takeover offer made by Marlborough Lines Limited in September of 2009.

The Panel determined that:

a) it is satisfied that Horizon and the Directors of Horizon acted in compliance with Rule 64 of the Takeovers Code when issuing its revised profit outlook on 28 September 2009 insofar as it related to the overall amount of the increased forecast profit;

b) it is not satisfied that Horizon or the Directors of Horizon acted in compliance with Rule 64 of the Takeovers Code by omitting to disclose the change in accounting treatment and its impact on Horizon's profitability in the revised profit outlook issued on 28 September 2009; and

c) it is satisfied that Horizon and the Directors of Horizon acted in compliance with Rule 64 of the Takeovers Code in making the statement in the target company statement that the Directors' assess that the Independent Adviser's valuation range does not adequately reflect the Board's view of the full value of Horizon.

The Panel has announced that it does not intend to take any further action in relation to Marlborough Lines' complaints other than to make orders in relation to the payment of its costs.

The Directors stated that throughout the entire takeover process the Board had acted in the best interest of all of Horizon's shareholders and had taken appropriate expert advice on material matters which formed the basis of its revised profit.

A copy of the decision is available on the website of the Takeovers Panel at www.takeovers.govt.nz.

For further details please contact:

Mr Ajay Anand CHIEF EXECUTIVE Horizon Energy Distribution Limited +64 7 306 2901 +64 21 272 7956

END End CA:00194742 For:HED Type:TAKEOVER Time:2010-05-11:10:33:17

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