New Zealand Exchange Limited
P.O. Box 2959
17 March 2011
Widespread Portfolios – Proposed restructure will increase NTA per share by 29.4% to 63.8 cents
We wish to advise that the proposed sale of the company’s 10% share of the Chatham Rock Phosphate Project to associated company Widespread Energy will have the following effects on Widespread Portfolios.
1. The shareholding in Widespread Energy will increase from 19.76% to 26.26%.
2. Widespread Portfolios will therefore then (indirectly) hold 26.26% of the Chatham Rock Phosphate Project (presently it holds 10% directly and 17.78% indirectly).
3. The transaction (supported by two independent valuations) will result in a realised capital gain of approximately $3.3 million.
4. The asset backing of Widespread Portfolios will increase by 14.5 cents a share from its present 49.3 cents to 63.8 cents.
5. The acquisition of PEP38526 and the Akura shareholding will diversify and widen Widespread’s investment portfolio.
Shareholders are advised to read the documents that have been sent to them concerning the proposed transactions and the shareholder meetings to be held on 30 March. We particularly wish to draw your attention to the two independent reports that have rigorously assessed the proposed transactions, the values attributed to the assets being transferred, and most importantly, the commercial logic underlying the transactions.
As indicated by the points set out above, it is the Board’s view that the transactions are in the best interests of Widespread Portfolios and not just in the best interests of its associated company, Widespread Energy.
Shareholders are also encouraged to contact Chris Castle by email or by phone if they wish to discuss these matters further
For and on behalf of the Board,
Chris D Castle
Wellington, 17 March 2011