August 7, 2008
Dear fellow Shareholder,
CONTINUE TO REJECT MACMAHON?S INADEQUATE OFFER
Your Board of Directors is disappointed that Macmahon Holdings has again extended its inadequate and failing offer for your shares. Macmahon continues its opportunistic attempt to acquire Ausdrill and transfer value to its shareholders at your expense.
In the past four weeks, Macmahon has received acceptances for only 0.03% of Ausdrill shares. Total acceptances are just 0.34% since the offer was announced 11 weeks ago.
Right to withdraw acceptance
If you are one of the few shareholders who has accepted Macmahon?s offer, you now have the right to withdraw that acceptance, which your Directors encourage you to do..
If your Ausdrill shares are in a CHESS Holding, please instruct your broker to withdraw your acceptance by 5 September 2008.
In any other case, simply complete the enclosed withdrawal notice and return it to Macmahon by 5 September 2008.
IGNORE Macmahon?s letter and other communications from Macmahon
Your Board of Directors urges you to IGNORE Macmahon?s letter to you announcing the extension of the offer and all other communications from Macmahon.
Macmahon?s letter relies on rhetoric and scaremongering about the state of the equities market to convince you that its offer has some merit. The offer?s inadequacies remain unchanged, particularly that Macmahon is offering you only 31% ownership of a company to which Ausdrill would contribute over 43% of the earnings, before synergies.
The letter also makes selective and incomplete comparisons of Ausdrill?s and Macmahon?s 2008 earnings per share. Ausdrill?s EPS for this period includes the shares issued in our November 2007 placement but the earnings benefits of investment of the proceeds will not be fully reflected in the 2008 financial year. Those earnings benefits will begin to accrue in the 2009 financial year, when we are forecasting earnings growth for Ausdrill at least equal to Macmahon?s medium term target earnings growth.
Ausdrill: in its best ever shape and capitalising on opportunities
Ausdrill is in its best ever financial and operational shape and is positioned to continue its strong performance for the foreseeable future. I set out in my letter dated 30 July 2008 the excellent developments since the announcement of Macmahon?s offer and the unprecedented growth opportunities upon which Ausdrill is capitalising.
Ausdrill?s Board, management and our outstanding employees remain committed and focused on continuing to grow this great business for the benefit of our shareholders.
You should continue to REJECT Macmahon?s inadequate and failing offer.
If you have any further questions or concerns, please contact the Ausdrill Shareholder Information Line on 1800 104 758 or from outside Australia on +61 2 8268 3691.
Yours sincerely
Terence O?Connor AM QC
Chairman
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