EGM SUPPLEMENTARY EXPLANATORY MEMORANDUM MAILED June 5, 2013 A...

EGM SUPPLEMENTARY EXPLANATORY MEMORANDUM MAILED



June 5, 2013


A Supplementary Explanatory Memorandum designed to clarify some aspects of the original Explanatory Memorandum [EM] has been mailed to PIF investors as of 3 June 2013

In Wellington’s online copy [NSX Release 3 June 2013] Supplementary Explanatory Memorandum [SEM] initially, we find three matters of concern as follows:

See SEM online link: http://www.nsxa.com.au/ftp/news/021727065.PDF

1] Misleading Proxy Latest Time

Under “KEY DATES” [page 5, online NSX version, SEM Release] it states: “If the meeting is adjourned by Unitholders on 6 June 2013, 7.00pm on 12 June 2013 will be the: Latest date and time for receipt of proxy forms for the adjourned Meeting. Unitholders may return either the yellow proxy or the pink Proxy Form.”

then…

Under “Your Vote is Important” [para 3, page 7, online NSX, SEM Release] it states; “Proxy Forms must be received no later than 11.00am on 12 June 2013 to be valid.”

My question is, which is it? These conflicting times are misleading and must be corrected by Wellington in an effective, communicated manner. If not corrected, some PIF investors proxy’s could end up missing the correct latest time and date for receipt of proxy and as such be incorrectly invalidated.

2] Large Discrepancy on Proforma Balance Sheet of ARL for 28 June 2013 [EM VS SEM]

On page 16, printed version, NET ASSET BACKING, EGM Explanatory Memorandum [EM], sent 6 May 2013 it states:

“NET ASSET BACKING PER ASSET RESOLUTION LIMITED SHARE ______ 10.62 CENTS”

See EGM EM link: http://www.nsxa.com.au/ftp/news/021726980.PDF

On page 7, online NSX version, SEM, released 3 June 2013 it states:

“Net asset backing per Asset Resolution Limited share ______ 5.26 cents”

See SEM link: http://www.nsxa.com.au/ftp/news/021727065.PDF

We note the discrepancy between 10.62 cents and 5.26 cents is 5.36 cents (a 50% difference)

In association with that of course are the “TOTAL EQUITY” values as follows:

TOTAL EQUITY EM released 6 May 2013 is ___________$124,174,500

TOTAL EQUITY SEM [NSX released 3 June 2013] is _____$61,474,059

We note the discrepancy between $124,174,500 and $61,474,059 is $62,700,441 (a 50% difference)

This large $62.7M (50%) discrepancy between Memorandum’s is only over a time difference of 4 weeks

There does not appear to be enough depth of information provided in relation to this matter in the SEM released 3 June 2013 (NSX online version). How did these discrepancies as indicated above, practically come about? Investors need these discrepancies to be financially justified.

The PIF AG has asked ASIC to examine the matter

3] ARL 31 December 2012 Interim Financial Report

ARL needs to mail out their 31 December, 2012 Interim Financial Report to all ARL investors to allow for investor informed decision to be made on the 5 EGM Resolutions. The SEM ARL Proforma Balance Sheet 28 June 2013 [page 13 NSX online SEM version] is not acceptable as it is based on “estimate assumptions” and “not an indication as to the value of the actual assets” [page 12, last para, NSX online SEM version].