Last week, QGC claimed Sydney Gas’ target statement in relation to the refinancing was “seriously deficient” because it did not provide its shareholders with sufficient information.

More specifically, QGC alleged that the underwriter and one of Sydney Gas’ major shareholders were associated.

The panel rejected this statement and said it found no evidence of an association after Sydney Gas disclosed further information about the identity and likely shareholdings of the underwriter and sub-underwriters of the recapitalisation plan.

Earlier this month, Sydney Gas announced plans for a $50 million share placement to repay its convertible notes debt.

The recapitalisation plan, which is subject to certain conditions and shareholder approval, includes establishing a new convertible note facility through Babcock & Brown.

About $20 million of the money raised will be used to fund the repayment of Sydney Gas’ current convertible notes, which mature on June 1. The remainder of the funds raised will be used to pay Sydney Gas’ share of development and exploration costs under its coal seam gas joint venture with AGL.