NZ Windfarms confirms $75 million share issue

NZ Windfarms Limited
Media Release
May 10 2007

NZ Windfarms confirms $75 million share issue

NZ Windfarms has today confirmed it has lodged for registration an Investment Statement and Prospectus for an issue of shares raising $75 million to meet future funding requirements. Following registration, the offer will open next Monday, May 14 2007.

The offer comprises 68,181,819 ordinary shares at an issue price of $1.10 per share. The offer is fully underwritten.

As previously announced, Vector Limited will become a cornerstone shareholder in NZ Windfarms by subscribing for 15,704,000 shares in the issue, which will give it a 19.99 percent stake in the Company once the offer is completed.

The offer includes a Shareholder Priority Pool of 5,000,000 shares available for subscription by holders of NZ Windfarms shares as at the close of business tomorrow (Friday May 11 2007, the Record Date). Copies of the Investment Statement and Prospectus will be sent to shareholders next week.

The remaining 47,477,819 shares have been allocated on a firm basis to institutional investors and NZX firms. Allocations have been made to 13 institutional investors in total, based in New Zealand and offshore, and including some of New Zealand’s largest institutions, as well as major NZX Firms.

Significant interest in firm allocations resulted in these being over-subscribed by more than 40 percent (excluding the allocation to the cornerstone investor and the Shareholder’s Priority Pool). There is no public pool, although the public will be able to apply through NZX firms.

Commenting on the proposals, NZ Windfarms’ Chairman, Derek Walker, said “We are extremely pleased to be able to confirm the offer and the allocations to the institutional investors and NZX firms. This follows the decision by New Zealand’s leading energy company, Vector, to take a cornerstone position, and earlier collaboration with Babcock & Brown and NP Power, major global wind energy investors. The position of NZ Windfarms to now execute its build strategy for wind generation assets over the medium term is very strong”.

Vector Chief Executive, Mark Franklin, said Vector was looking ahead to a strong association with NZ Windfarms in its role as cornerstone shareholder.

“This investment is a significant step in Vector’s environmental strategy which includes renewable energy sources. This comes at a critical time for New Zealand as we develop our response to climate change as a country.”

Under an agreement between the two companies, Vector will be entitled to appoint two directors to the Board of NZ Windfarms.

The Joint Lead Managers are ABN AMRO Craigs and ABN AMRO Rothschild. The offer is fully underwritten by ABN AMRO Rothschild.

The share offer and Vector cornerstone arrangement are subject to shareholder approval at a Special General Meeting to be held on Monday May 28 2007 in Christchurch. Notice of the meeting will be posted to shareholders shortly.

NZ Windfarms is a renewable electricity generator specialising in wind farm developments. The issue will increase its share capital from $8 million to approximately $78 million, providing funding for the completion of the Te Rere Hau wind farm in the Manawatu and for other new wind farm developments.

Stage 1 of Te Rere Hau was opened last September. NZ Windfarms has a 50 percent interest in the Te Rere Hau joint venture, with the other 50 percent owned by international energy groups NP Power and Babcock & Brown.

NZ Windfarms is progressing several further development opportunities, typically smaller wind farms designed to supply electricity close to consumer demand and to present partnering opportunities with local and regional stakeholders.

NZ Windfarms listed on the AX Board of the NZX following an initial public offering in 2005. It intends to move its listing to the NZX Main Board following the share issue.

No money is currently being sought and no applications for shares in NZ Windfarms will be accepted, or money received, until any potential investor has received an Investment Statement.

ENDS

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