Panel notes proposed Humanware transaction

10 May 2007

The Takeovers Panel is aware of the proposal involving Humanware Limited that has received recent media coverage. Humanware, a Christchurch based code company, is amalgamating into a subsidiary of Jolimont Capital, an Australian private equity firm. Shareholder approval is being sought on that proposal in the near future.

This is a transaction of the type that caused concern to the market last year and resulted in the Panel being asked to make new recommendations to the Minister of Commerce about possible changes to the law.

The Panel is currently preparing a consultation paper on the use of amalgamations and schemes of arrangement to effect changes of control of Code Companies, for publication later this year.

The Panel makes no comment on the merits of the proposed amalgamation.