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Summary of

Securities Act (Methven Limited) Exemption Notice 2004

2004/372

Gazetted on 28 October 2004
Expires on 30 June 2005

Effects of the exemption
Methven Limited and specified shareholders are not required to include information about the vendor shareholders in the offer documents for their share offer, which includes previously allotted securities.

Background
Methven Limited plans an initial public share offering, and is intending to list on NZX. The offer will include new and existing ordinary shares, as well as an offer of options to senior managers of the company.

The exemption
Methven Limited and specified vendor shareholders are exempt from regulations 3(1) and 7A(1) of the Securities Regulations 1983.

Conditions
The exemptions are on condition that the offer document:

• describes the effects of the exemptions;
• states that the vendor shareholders are each issuers of the shares, and so have obligations as issuers under the Securities Act 1978 and the Securities Regulations 1983.

Reasons
Where Part II of the Securities Act 1978 applies to an offer of previously allotted securities to the public, both the person offering the securities and the original allotter of the securities have a responsibility for the offer as issuers.

Information relating to the vendor shareholders may not be useful to potential investors in considering whether to subscribe for shares in Methven Limited and may be confusing.

The conditions of the exemptions require potential investors to be advised that the vendor shareholders remain legally responsible as issuers.