Download CP2`s Horizon Roads makes recommended proposal

CP2
Level 8 Aurora Place
88 Phillip Street
Sydney NSW 2000
AUSTRALIA
www.CP2.com
CP2 Limited
ABN 88 077 750 044
Media Release
22 July 2011
CP2’s Horizon Roads makes recommended
proposal to acquire the balance of ConnectEast
CP2 Limited (CP2) is pleased to announce that its acquisition vehicle Horizon Roads Pty Limited
(Horizon) has entered into an agreement to acquire the outstanding units in ConnectEast, the ASXlisted owner and operator of the EastLink tollway in Melbourne.
CP2 is an Australian-owned and headquartered global infrastructure investment manager, and
already owns or controls thirty-five per cent of ConnectEast.
The proposal of 55 cents cash per unit represents a premium of 22.2 per cent to the last closing price
of 45 cents on 21 July 2011 and a premium of 22.4 per cent to the one month VWAP, and implies an
equity value for all of ConnectEast of $2.2 billion.
The transaction has been unanimously recommended by the Independent Directors of ConnectEast
in the absence of a superior proposal and subject to the opinion of an independent expert.
CP2 Managing Director, Mr Syd Bone, said, “We believe the proposal, which has been
recommended by the ConnectEast Independent Directors, is highly attractive for ConnectEast
security holders.”
“ConnectEast is a single purpose company and we recognise the importance of ensuring that it
continues to perform in a manner consistent with its obligations under the Concession Deed. From a
customer, management and employee perspective, the operations of EastLink will be business as
usual.”
Mr Bone said the announcement follows a due diligence and equity raising process conducted by
CP2.
“ConnectEast is a good asset for patient, long term investors. Following a lengthy process, we have
assembled a diverse group of high quality, institutional investors to support our offer for the sixty-five
per cent of ConnectEast not already owned or controlled by CP2-managed funds,” Mr Bone said.
Funding for the offer is being provided by its global investor group: Universities Superannuation
Scheme in the UK, pension asset manager APG of the Netherlands, National Pension Service of
Korea, Leader Investment Corporation (a subsidiary of China Investment Corporation), ATP of
Denmark, New Zealand Superannuation Fund, Teachers Insurance and Annuity Association of
America and Mirae Asset Maps/ Korean Teachers Credit Union. Total funding of $1.4 billion has
been raised.
Mr Bone said, “We are pleased to be able to bring global capital to infrastructure investment in
Victoria and Australia.”
As an alternative to the cash consideration, ConnectEast unitholders will also be provided with the
opportunity to elect to rollover their units into an unlisted rollover fund which will maintain an ongoing
exposure to ConnectEast.
The transaction is subject to regulatory approvals and the approval of ConnectEast unitholders.
Further details of the transaction and a copy of the Scheme Implementation Deed are available in the
ASX release made by ConnectEast today. More information on CP2 can be found at www.CP2.com.
CP2 is advised by Flagstaff Partners and Johnson Winter & Slattery.
For further information:
► Hinton & Associates (Media): Tim Duncan/Nerida Mossop +61 3 9600 1979
► Flagstaff Partners (Investors): Anthony Burgess/Kent Greig +61 3 9664 4555
► CP2 Limited: Syd Bone/Tim Heaton +61 2 8274 5912