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Companies Update
26 October 2009
Update no 06/09

Important information for ASX Listed Entities

New Entitlements Offer Structure

ASX wishes to draw to the attention of listed entities a variation to the offer structure for carrying out an accelerated pro rata entitlements issue. This offer structure has been used for the first time by CSR Limited in its offer announced today and is referred to in the announcement by CSR as the "Simultaneous Accelerated Renounceable Entitlements Offer" ("SAREO").

The main difference between the SAREO and other versions of accelerated entitlements offers is that while the offer is still carried out in two stages (the offer to institutional shareholders first and the offer to retail shareholders later) the sale of the entitlements of all shareholders who did not take up the offer -- the institutional shareholders, the retail shareholders, and those that were ineligible to take up the offer -- is carried out by a single bookbuild after the close of the retail offer. Any value achieved from the sale of those 'renounced' entitlements (if there is any) will therefore be the same on a per-share basis for institutional and retail shareholders.

ASX acknowledges that the decision for the appropriate type of fundraising is subject to a complex set of considerations. The Listing Rules accordingly do not prescribe the type of fundraising option which may be pursued by listed entities. However, ASX believes the SAREO to be a development that may have wider market application, and accordingly draws it to listed entities' attention.

ASX also encourages all listed entities to consult with their ASX Issuers Adviser at an early stage when they are planning entitlements issues, or any other corporate actions, which require Listing Rule waivers and/or the approval of a timetable.

To help keep our Listed Entities informed of information and events ASX will be sending emails to the Company Secretary's Office from time to time. You are receiving this email because you have been identified as a key contact within the Company Secretary's Office at your organisation. If you would like to update your email address please do so via the Directors/Senior Management page on ASX Online for Companies. Feel free to forward this email to any relevant parties within your organisation.