Ann: FORECAST: CNU: Chorus withdraws dividend gui

• Release Date: 18/11/13 10:31
• Summary: FORECAST: CNU: Chorus withdraws dividend guidance
• Price Sensitive: No
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					CNU
18/11/2013 08:31
FORECAST

REL: 0831 HRS Chorus Limited (NS)

FORECAST: CNU: Chorus withdraws dividend guidance

STOCK EXCHANGE ANNOUNCEMENT

18 November 2013

Chorus withdraws dividend guidance

In light of the ongoing regulatory uncertainty facing Chorus, including the
outcome of the Government's independent review, Chorus has elected to
withdraw its FY14 dividend guidance of 25.5 cents per share.

"At this time of unprecedented levels of investment by Chorus, withdrawing
dividend guidance is a regrettable but necessary step in light of the ongoing
uncertainty Chorus faces," said Mark Ratcliffe, Chorus CEO.

Chorus is investing roughly three dollars in the Ultra-fast Broadband
initiative for every dollar of financing provided by the Crown to support the
delivery of the upgraded infrastructure, which is of critical importance to
New Zealand's future.

"We are proud of our role as the cornerstone partner in the Ultra-fast
Broadband initiative, which is being delivered like clockwork."

"We remain hopeful that as the major partner in New Zealand's largest public
private partnership we can work with the Government to find a timely solution
to the current issues that works for all parties and provides Chorus and its
investors with the certainty we need to get on with delivering this once in
many generations infrastructure upgrade."

Background

The Chorus Board noted in August that it intended to reassess Chorus' optimal
capital management settings when the outcomes from the Government's
regulatory framework review were known.

Following the Commerce Commission's decision on 5 November which reduces UBA
prices by 49% from 1 December 2014, Chorus announced that absent intervention
by the Government, it would need to fundamentally review a range of key
matters.

On 7 November the Minister for Communications and Information Technology
announced an independent review of the impact of the Commerce Commission's
decision on Chorus' financial position and capability to deliver on its
contractual commitments under the Ultra-Fast Broadband and Rural Broadband
Initiatives.  The Minister also requested that Chorus advise by 18 November
(today) what steps it intended to take in relation to capital management
options.

As there is ongoing uncertainty regarding the outcome of the Government's
review and related matters, Chorus has elected to withdraw its FY14 dividend
guidance.  Chorus is continuing to review its capital management settings as
regulatory and other key matters are progressed.  It is not feasible at this
point for Chorus to comment on what other capital management changes might be
appropriate.

Chorus looks forward to assisting and co-operating with the Government's
independent adviser on the assessment of the impact of the Commerce
Commission's decisions.

ENDS

For further information:

Ian Bonnar
Corporate Affairs Manager
Phone: +64 9 358 6061
Mobile: +64 (27) 215 7564
Email: [email protected]

Brett Jackson
Investor Relations Manager
Phone: +64 4 498 9271
Mobile: +64 (27) 488 7808
Email: [email protected]
End CA:00243915 For:CNU    Type:FORECAST   Time:2013-11-18 08:31:17