JWS's drafting of pre-emptive rights provisions was tested in a recent NSW Supreme Court decision - APT SEA Gas Holdings Pty Ltd v ANP SEA Gas Holdings Pty Ltd and Anor  NSWSC 1221 and on subsequent appeal  NSW CA 296. The case involved the exercise of pre-emptive rights concerning the project vehicle for the SEA gas pipeline (running from Iona in Victoria to Adelaide in South Australia).
The facts relate to whether one of the parties successfully accepted an offer made under the pre-emptive rights provisions. However, two key points came out of the reasons for decision:
The case underlines the importance of careful drafting (and interpretation) of procedural provisions such as pre-emptive rights and notice provisions, and the importance of taking advice when drafting and giving formal notices (especially in the context of the exercise of pre-emptive rights).
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