New Zealand Exchange Limited
P.O. Box 2959
28 January 2011
Widespread Portfolios Net Asset Backing
We wish to advise that the unaudited net asset backing per Widespread Portfolios share, as at 8 a.m. today, ranges from 41.5 cents to 45.9 cents.
The lower figure is based on the most recent sale price of AMR shares in Canada, the higher one is based on our share of AMR’s net assets. We consider the latter approach relevant as, despite recent dilution of our holding in percentage terms, we still hold a strategic stake and have both board representation in AMR and a continuing management influence.
We don’t consider the most recent sale price in Canada to be an accurate indicator of AMR’s enterprise value as the stock is very thinly traded. The top 20 AMR shareholders are long-term holders who collectively hold 98.6% of the company and most of the remaining smaller shareholdings are registered in New Zealand and are therefore not easily traded in Canada
As can be seen from the table below the AMR shareholding is no longer our key asset. Our direct and indirect holdings in the Chatham Rise Rock Phosphate Project continue to hold that position.
Using the share of AMR’s net assets approach, the fully diluted NTA per WID share is 93 cents assuming the listed warrants are exercised @ $2.982 and the unlisted director-held warrants are exercised @ $3.282. All warrants expire on 30 June 2012.
For and on behalf of the Board,
Chris D Castle
Mt Wellington, 28 January 2011