2 Sep 2003
Infratil and Energy Developments Limited ("Energy Developments") have agreed to terminate the Shareholder Agreement between them. The agreement was put in place in July 2002 when Infratil first purchased shares in Energy Developments, and it was modified in February 2003.
The Shareholder Agreement contained various provisions including a restriction on Infratil's ability to increase its Energy Developments shareholding to above 15% (the holding is currently 12.86%). There was a provision restricting Infratil from selling its shareholding but this expired in July 2003.
The Shareholder Agreement also created unintended and unforeseen relevant interest complexities which concerned the Australian Securities and Investment Commission.
Infratil has agreed with Energy Developments that there is no net benefit to either Infratil or to Energy Developments generally from the continuation of the Shareholder Agreement and that in principle the establishment of a freer market in the shares of the company is in the best interests of all shareholders.
Infratil's nominee to the Energy Developments board, Dr Bruce Harker, will continue in his role as Deputy Chairman of the company and member of its Audit Committee.
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