Rejection of takeover offer by APA Group

Broadcast of the Target's Statement Presentation

TAKE NO ACTION AND REJECT THE BID FROM APA

The Board of Hastings Funds Management Limited considers that APA's highly conditional and opportunistic offer undervalues HDF securities.

As detailed in the Target's Statement, your Board unanimously recommends REJECTION of this offer because:

1. The Offer undervalues HDF
2. The timing of the Offer is highly opportunistic as HDF is about to commence delivering strong contracted revenue growth
3. The Offer does not recognise the value of HDF's strategically positioned pipelines
4. HDF is delivering on its stated strategy
5. Acceptance of the Offer may trigger a CGT liability
6. The Offer is highly conditional and uncertain
7. If you accept the Offer you will become an APA Securityholder, which will change the risk/return profile of your investment

You will have received APA's Bidder's Statement and First and Second Supplementary Bidder's Statement's which contains the formal offer for your HDF securities. You should have received the Target's Statement from Hastings, which sets out in more detail the reasons for your Board's recommendation to REJECT APA's conditional takeover offer. You can also view HDF's First Supplementary Target's Statement via the link below which contains details about the Epic Energy Debt Refinancing.

TO REJECT APA'S OFFER, SIMPLY DO NOTHING AND TAKE NO ACTION IN RELATION TO THE BIDDER'S STATEMENT AND FIRST AND SECOND SUPPLEMENTARY BIDDER'S STATEMENTS SENT TO YOU BY APA.

Please call 1800 815 610 (toll free in Australia) or +61 2 8256 3357 (outside Australia), if you have any queries.               

Recent statements from Hastings Funds Management about the offer and HDF:

22/02/2012: HDF receives credit approvals to refinance all its debt
20/01/2012: Target's Statement Media Release
20/01/2012: Target's Statement Presentation
20/01/2012: Target's Statement
09/01/2012: Letter advising investors to take no action regarding offer
29/12/2011: Further details regarding gas transmission contract terms
22/12/2011: New gas transportation contract worth $460 million
22/12/2011: Letter to securityholders regarding APA Groups offer
19/12/2011: South West Queensland Pipeline expansion update
15/12/2011: Rejection of the takeover offer by the APA Group
14/12/2011: APA announces takeover bid for HDF