| Fri 9 May 2008, 11:50 | | TBS - Tiger Brands - Adcock Ingram Critical Care ( |
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TBS
TIIH
TBS - Tiger Brands - Adcock Ingram Critical Care (Pty) Limited Investigation and
Trading Statement
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
TIGER BRANDS LIMITED
Adcock Ingram Critical Care (Pty) Limited Investigation and Trading Statement
Adcock Ingram Critical Care (Proprietary) Limited ("AICC")
Shareholders of Tiger Brands are referred to the announcement made on SENS on 22
April 2008, in which shareholders were advised that Tiger Brands had been
granted a short extension of time in which to present documentation to the
Competition Commission in connection with the complaint referral by the
Competition Commission relating to alleged anti-competitive practices by AICC.
Edward Nathan Sonnenbergs Inc has completed its investigation, the finding of
which has been considered by the Board of Tiger Brands. The investigation
conducted by Edward Nathan Sonnenbergs Inc., together with counsel, concluded
that the allegations of collusive tendering and market allocation made in the
complaint referral against AICC were, on a balance of probabilities,
substantially correct.
The Company has conveyed this finding to the Competition Commission and engaged
with the Commission in an endeavour to resolve the matter. As a consequence of
this engagement, AICC and Tiger Brands have concluded a consent agreement with
the Competition Commission, in which AICC admits to market allocation and
collusive tendering of the nature alleged by the Commission in its complaint
referral. In terms of the consent agreement, AICC will pay an administrative
penalty of R53,5 million. The agreement is required to be referred to the
Competition Tribunal for confirmation in terms of the Competition Act.
Tiger Brands is determined to identify and deal with any anti-competitive
behaviour in the group. A further investigation commissioned by the Tiger Brands
Board is part of this initiative as the Company is determined to restore its
reputation for integrity and sound corporate governance.
Trading Statement
Shareholders are advised that, having considered the latest financial
information in respect of the six months ended 31 March 2008, it is expected
that headline earnings per share and earnings per share will be between 10% and
15% higher than that achieved in the corresponding period of the previous
financial year.
The results for the six months ended 31 March 2008 include a provision for the
administrative penalty that has been agreed with the Competition Commission
which will be paid by Adcock Ingram Critical Care (Pty) Limited and which is
referred to separately in this announcement.
The results for the half year ended 31 March 2008 are scheduled for release on
19 May 2008, when a detailed analysis of the performance of the Company will be
provided. The information in this trading statement has not been reviewed or
reported upon by the Company`s auditors.
Bryanston
Date: 9 May 2008
Sponsor
JP Morgan Equities Limited
Date: 09/05/2008 11:50:01 Produced by the JSE SENS Department.
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