Municipality of Eindhoven and Macquarie European Infrastructure Fund agree to acquire Netherlands gas distribution businesses

19 June 2006

The Municipality of Eindhoven (51%) and the Macquarie European Infrastructure Fund (49%) have agreed to acquire 100% of two Dutch gas distribution networks, Obragas Net. N.V. and B.V. Netbeheer Haarlemmermeer.  The acquisition is conditional upon obtaining approval from the Dutch Ministry of Economic Affairs and the Supervisory Board of RWE AG.

Obragas Net N.V. is the fifth largest gas distribution network in the Netherlands, providing gas to 190,000 customers in the province of Noord-Brabant. It is contiguous with NRE, a gas and electricity distribution network in which the Municipality of Eindhoven is major shareholder.  The Macquarie European Infrastructure Fund has agreed to acquire 49% of NRE subject to the approval of the Dutch Ministry of Economic Affairs.

B.V. Netbeheer Haarlemmermeer is a gas distribution network with approximately 55,000 customers located in the fast growing region around Schipol Airport to the south of Amsterdam.

Alderman Hans-Martin Don of the Municipality of Eindhoven said, “We are delighted to be making this investment in partnership with the Macquarie European Infrastructure Fund and building on our existing investment in the regions. We look forward to working with the businesses as they continue to deliver important services to the regions.”

“This transaction will potentially reinstate majority ownership of gas distribution grids that are presently 100% privately-owned into public hands,” Mr Don said.

The Macquarie European Infrastructure Fund makes long-term investments in utilities and other infrastructure assets in European OECD countries. It aims to deliver sustainable cash yields and moderate capital growth from a diversified portfolio of quality infrastructure assets, such as electricity and gas transmission and distribution networks, water and sewerage companies, rail, airports, communications infrastructure, toll roads and renewable energy assets.

Mr Martin Stanley, CEO of the Macquarie European Infrastructure Fund, said “We are pleased to have formed this joint venture with the Municipality of Eindhoven to acquire these community based essential-service infrastructure assets.  Both Obragas Net N.V. and B.V. Netbeheer Haarlemmermeer complement our interest in NRE and together will create a strong regional player in the Dutch energy distribution market.”

Notes to editors:

The Municipality of Eindhoven is the 5th largest city in the Netherlands, with 208,500 inhabitants. Eindhoven is one of the European hotspots regarding innovation and high-quality technology. Apart from technology, Eindhoven is also proud of its internationally renowned cultural centres, various shopping facilities, its beautiful countryside, the many educational possibilities (some 21,000 students receive higher education) and the innovative architectural projects. Eindhoven is currently the largest shareholder in NRE that serves 300,000 customers in the Southern part of the country. NRE has already unbundled its network and supply activities. The supply activities were sold to E.on and NRE has agreed to sell 49% of the network business to Macquarie European Infrastructure Fund.  This transaction is subject to the approval of the Dutch Ministry of Economic Affairs. The municipality regards majority public ownership of regional energy networks as very important to safeguard public interest.

The Macquarie European Infrastructure Fund is a €1.5bn vehicle that targets investments in infrastructure and related assets in OECD Europe. The Fund aims to deliver sustainable cash yields and moderate capital growth from investment in a diversified portfolio of quality infrastructure assets.  MEIF is managed by a member of the Macquarie Bank Group. Members of the Macquarie Bank Group manage more than €20 billion in infrastructure equity through a range of listed and unlisted vehicles, invested in assets including transportation, water, telecommunications and energy in the UK, Germany, Portugal, Italy, France, Sweden, Denmark, the Netherlands, Belgium, Canada, US, Australia, Korea, Japan and South Africa.  Macquarie has built a strong track record of adding value to the businesses it owns and operates and brings the benefits of global resources, relationships and expertise to its infrastructure businesses and the communities they serve.

For further information, please contact:

Karen Smith
Corporate Communications
Macquarie Group (London)
Tel: (44) (0)20 7065 2420
Mobile: (44) (0)79 1708 1541