STAND: NZXR: STAND IN THE MARKET - Horizon Energy Distribution Limited

14 Jun 2010 9:39 am

NZXR 14/06/2010 STAND

REL: 0939 HRS NZX Regulation

STAND: NZXR: STAND IN THE MARKET - Horizon Energy Distribution Limited

URGENT COMMUNICATION

MEMORANDUM

To : Market Participants & NZX Data Distributors

From : NZX Client and Market Services

Date : June 14, 2010

Subject : Stand in the Market - HEDZ

Message:

STAND IN THE MARKET - Horizon Energy Distribution Limited

First NZ Capital Securities Limited has received instructions to stand in the market to acquire up to 2,524,130 (10.1% of the shares on issue) ordinary shares in Horizon Energy Distribution Limited. The Price of the offer is NZ$4.15 per Horizon Energy share. From 16 June 2010 this will be reduced to $4.06 per Horizon Energy share (due to the $0.09 cent dividend with a record date of 16 June and an ex-date of 25 June 2010).

This stand in the market will be conducted using a temporary code in Trayport as provided in Rule D10.7 of the NZX Participant Rules.

The stand in the market will commence at 10.45am under the Trayport code HEDZ. The settlement code will be HEDZ. Pre-Open will commence at 9.45am.

The following conditions apply to this bid: The stand will commence from 10.45am on Monday, 14 June 2010 and will remain open until the earlier of:

i) completion or discontinuance of the instruction; and ii) 5:00pm Friday, 25th June 2010.

The stand is subject to the following condition:

If, after 16 June 2010 but within the next six months commencing on Saturday 12 June 2010, Marlborough Lines Limited purchases Horizon Energy shares for more than $4.06, any successful shareholder accepting into the Offer will be paid the amount, if any, by which the purchase price exceeds $4.06 per share. Further, if any shares acquired by Marlborough Lines Limited under the Offer are sold after 16 June 2010 but within the next six months commencing on Saturday 12 June 2010 for more than $4.06, the seller will be paid the amount, if any, by which the sale price exceeds $4.06 per share.

Notes:

The requirements of Rule D10.7 are designed to ensure that retail investors have the opportunity to participate in substantial acquisitions. Accordingly CSN requirements relating to entering orders into a stand will be the same as for "general" trading, i.e. those at Participant Rule 11.4. and other legitimate exceptions from the requirement to enter a CSN. However, NZX will disallow the use of the "m" (multiple) flag to allow for adequate monitoring of the above stand condition. Where this condition is not met and the broker has not contacted NZX and satisfied it that the objectives of Rule D10.7 have been met, NZX will reverse trades. Failure to meet undertakings given to NZX in relation to this will constitute a breach of Good Broking Practice.

Short selling shall be governed by the standard rules relating to that issue in force from time to time. These rules are currently at A10.14 of the Participant Rules.

A copy of the statement released by First NZ Capital Securities is attached for your information.

Please refer to the information on CSN use provided in the Guidance Note - Stands in the Market.

Please do not hesitate to contact NZX Client and Market Services on (04) 496 2853 or lcr@nzx.com if you have any queries.

ENDS End CA:00196049 For:NZXR Type:STAND Time:2010-06-14:09:39:39

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