AusNet Services (AST) 2015 EGM Voting Intentions

Company/ASX Code : AusNet Services (AST)
Registry : Computershare Services
Poll/Show of Hands : Proposed poll on all items, probably using IML technology
Webcast : Yes
Venue :
Melbourne Convention Centre Melbourne, Victoria 3000
Monitor : Mr Tom Rado
AGM Details / NoM : Monday 26th October, 2015
ASA Position
Issue of shares pursuant to the Dividend Reinvestment Plan (DRP)

AusNet Services Limited's constitution (clause 3.10) does not allow the issue of shares unless prior approval is obtained at a members’ meeting. This is to comply with the Singaporean Listing Rules. Although ASX Listing Rule 7.1 allows a company to issue up to 15% of issued capital without prior approval in any 12 month period, the Singaporean Listing Rules do not.

This approval is for an 18 month period and has been sought and obtained at each of AusNet's AGMs since listing other than its July 2015 AGM.  At the AGM held on 23rd July, a resolution (Item 7) to allow the company to issue shares in connection with the DRP, rights issues and other purposes was opposed by the two major shareholders (Singapore Power and State Grid Corp of China, holding a combined 51% of the votes) and was not passed. The reason given by Singapore Power was their opposition to major capital raising, such as rights issues.

This resolution however is specific to the DRP and we see no reason to oppose it.  It is also presumed that it will not be opposed by the two major shareholders given their earlier comments.

The individual involved in the preparation of this voting intention has a shareholding in this company. 

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