QLD: BrisConnections shareholder urges against wind-up

AAP General News (Australia)
04-08-2009
QLD: BrisConnections shareholder urges against wind-up

BRISBANE, April 8 AAP - A major shareholder in developer BrisConnections has pleaded
with unit holders not to wind up the company.

BrisConnections, the developer of Brisbane's $3.4 billion Airport Link tunnel, was
listed last year as a partially-paid stock, with investors paying an initial $1, with
an additional $2 owed in two future instalments.

The stock subsequently tumbled to less than one cent amid the global credit crunch
as institutions bailed out.

A meeting in Brisbane on April 14 will allow unit holders to vote on a wind-up relieving
them of the two $1-a-unit calls on their investment.

QIC, a major shareholder in the company and one of Australia's largest institutional
fund managers, said in a statement on Wednesday the wind-up proposal should be voted down.

"QIC does not believe that winding up the trusts or the removal of the responsible
entity is in the best interests of its clients," it said.

"According to QIC's analysis these propositions are in fact value-destructive.

"There is value created only if the road gets built, built well, and as quickly as possible."

QIC, formerly known as Queensland Investment Corporation, said it remained confident
"in the long-term success of the investment and its ability to provide our clients with
solid returns".

Meanwhile, BrisConnections co-underwriter Macquarie Group is making a claim in the
Queensland Supreme Court against unnamed parties to ensure they "fulfil their contractual
obligations" to BrisConnections.

The case will continue on Thursday.

Macquarie Group is also in talks with co-underwriter Deutsche Bank on a proposal which
would mean unit holders would not be legally pursued for the $1 instalment due to be paid
on April 29, provided the unit holders voted against the wind-up.

But the proposal has yet to be agreed.

AAP pjo/ss/mn

KEYWORD: BRISCONNECTIONS WRAP

2009 AAP Information Services Pty Limited (AAP) or its Licensors.