Commerce Commission releases further steps in regulatory pr

Chorus Limited
Level 10, 1 Willis Street
P O Box 632
Wellington
New Zealand

Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

10 July 2020

Commerce Commission releases further steps in regulatory process
The Commerce Commission has announced a change to timing for the next step in the input
methodologies process. As part of its announcement the Commission has said it will release
a consultation paper on 13 August, relating to changes they are considering making to their
approach to valuing the financial loss asset and associated updates to the draft
determination provisions.
The Commission says the changes they are considering in relation to the financial loss asset
involve adopting a discounted cash flow approach to valuation, rather than the building
blocks approach proposed in its November 2019 draft decisions, and a different treatment of
investments that pre-date the UFB Initiative.
Chorus CEO JB Rousselot said it is disappointing that a potentially significant change of this
nature is being considered this late in the Commission’s process.
A reassessment of the current proposed approach to financial loss valuation could have a
material impact on the initial value of the loss asset. Chorus awaits more detail from the
Commission’s consultation paper to better understand the implications of this approach and
will be making submissions through the consultation rounds.
Authorised by:
JB Rousselot
Chief Executive Officer

ENDS

For further information:

Steve Pettigrew
Head of External Communications
Mobile +64 (27) 258 6257
Email: Steve.Pettigrew@chorus.co.nz
Brett Jackson
Investor Relations Manager
Phone: +64 4 896 4039
Mobile: +64 (27) 488 7808

Email: Brett.Jackson@chorus.co.nz