APA GROUP TAKEOVER OFFER

On 12 October 2012, Hastings Funds Management Limited (Hastings), as Responsible Entity for HDF, accepted the APA Group’s (APA) offer in relation to the 30,323,086 securities that it received for the most recent performance fees from HDF.

Hastings notes APA’s offer is now unconditional and is scheduled to close at 7:00pm (AEST) on 14 November 2012

If you have any question regarding the takeover offer, please call 1800 815 610 (toll free in Australia) or +61 2 8256 3357 (outside Australia).     

On 21 August 2012 a subcommittee of independent directors of Hastings Funds Management Limited (HFML), as Responsible Entity for HDF, advised that it had assessed the APA Group’s (APA) improved takeover offer and unanimously recommend that HDF Securityholders accept APA’s offer in the absence of a superior proposal.

Subject to meeting other offer conditions, APA’s offer price is dependent on the level of HDF ownership that APA achieves, namely:

·        If APA achieves ownership of 90 percent or more of HDF securities and becomes entitled to proceed to compulsory acquisition, its offer will comprise $0.80 in cash and 0.390 APA securities for each HDF security, or an implied value of $2.60 per HDF security based on APA’s closing price on 20 August 2012 of $4.62.

·        If APA achieves ownership of more than 70 percent but less than 90 percent of HDF securities, its offer will comprise $0.72 in cash and 0.390 APA securities for each HDF security, or an implied value of $2.52 per HDF security based on APA’s closing price on 20 August 2012 of $4.62.