APA GROUP — Capital/Financing Update 2012

Jul 1, 2012

Hastings Funds Management Limited ABN 27 058 693 388 AFSL No. 238309

Total pages: 2

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Level 27, 35 Collins Street Melbourne VIC 3000 Australia T +61 3 8650 3600 F +61 3 8650 3701 www.hfm.com.au Melbourne, London, San Antonio, Sydney

ASX Announcement

Hastings Diversified Utilities Fund (HDF)

2 July 2012

HDF update

PPA proposal

A subcommittee of independent directors of Hastings Funds Management Limited (HFML), as Responsible Entity for HDF, today advised that further to the ASX announcement released to the market on 15 May 2012, Pipeline Partners Australia Pty Limited (PPA), has requested, and has been granted an extension of due diligence until Monday 9 July 2012.

The additional due diligence period also includes an extension of previously agreed customary "no-shop" arrangements, and a cost reimbursement undertaking applicable in certain circumstances of up to $5 million if a binding offer consistent with the terms of the indicative proposal is received but not recommended by the independent directors.

PPA’s indicative, non-binding and conditional all cash proposal of $2.35 per security (less adjustments to distributions paid from 15 May 2012) for all the issued securities in HDF remains unchanged as at market close 29 June 2012.

APA Group offer

The HFML Board continues to recommend that securityholders REJECT the takeover offer by APA Group (APA), which is scheduled to close at 7.00 pm (Sydney time) on 31 July 2012 (unless extended). APA’s implied offer value of cash and scrip for all the issued securities in HDF was $2.13 (less adjustments to distributions paid from 14 December 2011) as at market close on 29 June 2012.

HDF Performance Fee

HDF accrues performance fees, if earned, on a six monthly basis, with the most recent period ending the six months to 30 June 2012. The HFML Board intends to make its announcement in relation to HDF’s performance fee for the period in the week commencing 9 July 2012.

For further enquiries, please contact:

For further enquiries, please contact:
Colin Atkin	Simon Ondaatje
Chief Executive Officer	Head of Investor Relations
Hastings Diversified Utilities Fund	Hastings Funds Management
Tel: +61 3 8650 3600	Tel: +61 3 8650 3600
Fax: +61 3 8650 3701	Fax: +61 3 8650 3701
Email: investor_relations@hfm.com.au	Email: investor_relations@hfm.com.au
Website: www.hfm.com.au	Website: www.hfm.com.au

Unless otherwise stated, the information contained in this document is for informational purposes only. It does not constitute an offer of securities and should not be relied upon as financial advice. The information has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person or entity. Before making an investment decision you should consider, with or without the assistance of a financial adviser, whether any investments are appropriate in light of your particular investment needs, objectives and financial circumstances. Neither Hastings, nor any of its related parties including Westpac Banking Corporation ABN 33 007 457 141, guarantees the repayment of capital or performance of any of the entities referred to in this document and past performance is no guarantee of future performance. Hastings, as the Manager or Trustee of various funds, is entitled to receive management and performance fees.

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Jane Frawley Company Secretary Hastings Funds Management Limited