| Mon 12 Nov 2007, 14:57 | | TBS - Tiger Brands Limited - Agreement Reached Wit |
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TBS
TIIH
TBS - Tiger Brands Limited - Agreement Reached With Competition Commission
TIGER BRANDS LIMITED
"Tiger Brands" or "the Company"
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN: ZAE000071080
AGREEMENT REACHED WITH COMPETITION COMMISSION
On 16 February 2007, the Company announced that it had received a complaint
referral from the Competition Commission relating to anti-competitive
practices that had allegedly taken place during December 2006 at the company`s
bakery operations in the Western Cape.
The Company immediately undertook to co-operate with the Commission and as a
result, initiated a wider investigation into both its milling and baking
operations. This investigation was conducted by attorneys Edward Nathan
Sonnenbergs Inc., who also instructed Econometrix (a firm of independent
economists) to determine whether there was any evidence that consumers may
have been adversely affected by any alleged anti-competitive activity. KPMG
was also retained by Edward Nathan Sonnenbergs Inc. to verify financial and
pricing information provided to them by the Company. The findings of this
investigation were shared, in a confidential report, with the Competition
Commission.
The investigation evidenced meetings between certain employees of the Company
and some of its competitors which amounted to contraventions of the
Competition Act. The Econometrix investigation found, however, that there was
no evidence that consumers had been adversely affected by such activity.
Agreement has been reached with the Commission in terms of which Tiger Brands
will pay an administrative penalty of R98,8m in respect of contraventions at
its baking operations. The agreement is required to be referred to the
Competition Tribunal in terms of the Competition Act.
The Competition Commission has granted the Company corporate leniency with
regard to contraventions that occurred in its milling operations.
Nick Dennis, Chief Executive Officer of Tiger Brands, commented that "the anti-
competitive activity that took place was completely unacceptable and contrary
to our ethical standards. The Company has accepted full responsibility for the
actions of the employees involved. At the outset we undertook to fully co-
operate with the Commission, which we have done. It is completely regrettable
that this has taken place, but we are satisfied that the investigation and
ongoing discussions with the Commission have led to a resolution of the
matter".
Bryanston
Date: 12 November 2007
Sponsor
JP Morgan Equities Limited
Date: 12/11/2007 14:57:22 Produced by the JSE SENS Department.
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