| Fri 13 Feb 2009, 13:00 | | AEG - Aveng - Company Announcement |
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AEG
AEG
AEG - Aveng - Company Announcement
AVENG LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1944/018119/06)
ISIN: ZAE000111829
SHARE CODE: AEG
("Aveng" or "the Group")
A SENS announcement issued on 9 September 2008 advised shareholders of an
investigation by the Competition Commission into anti-competitive practices in
relation to concrete products, which form part of a range of products
manufactured by Infraset, a business unit within Aveng (Africa).
Aveng hereby advises shareholders that after engaging with the Commission it has
yesterday entered into a consent agreement with the Commission to settle a
complaint arising from that investigation. This follows a finding by the
Commission that Infraset had contravened the Competition Act in relation to
certain of its concrete products.
In terms of the consent agreement, which is subject to confirmation by the
Competition Tribunal, Aveng (Africa) agreed to pay an administrative penalty in
the amount of R46.3m, being 8% of the turnover attributable to Infraset in the
previous financial year, less the turnover attributable to paving products. This
amount will be paid to the Commission in three equal annual payments.
The Group has suspended two executives implicated in the investigation pending
an internal probe into any misconduct associated with the findings of the
Commission. Further disciplinary action may be taken depending on the outcome of
this process. In addition, another executive has been placed on special leave.
Aveng had already launched several initiatives prior to the Competition
Commission investigation, including an educational programme in conjunction with
a law firm to train senior executives in competition matters and the roll-out of
an anti-corruption framework. In addition, Aveng (Africa) will develop and
implement a formal compliance programme as prescribed by the Competition
Commission in terms of the consent agreement.
Aveng`s Board of Directors is committed to good corporate practices, has a zero
tolerance policy towards unethical behaviour and will continue to act swiftly to
deal with any breaches of its Code of Business Conduct and the Competition Act.
The Group expects every employee to adhere not only to the letter, but also to
the spirit of the Code and all relevant legislation. Aveng is committed to co-
operating fully with the Commission.
Invitation to participate in a conference call
(13 February, 15h00)
Roger Jardine, Chief Executive Officer of The Aveng Group, cordially invites you
to participate in a conference call regarding the Competition Commission`s
announcement.
Please dial in on the following numbers to participate on the live call:
Johannesburg: 011 535 3600
South Africa (Toll-Free): 0 800 200 648
UK (Toll-Free): 0 800 917 7042
Australia (Toll-Free): 1 800 350 100
USA Toll Free: 1 866 752 6302 (Press *0 for an operator)
Canada Toll-Free: 1 866 802 2463 (Press *0 for an operator)
Other Countries: +27-11-535-3600
A recording of the conference call will be available for three days. If you
would like to listen to a recording, please dial:
South Africa: 011 305 2030
UK Toll-Free: 0 808 234 6771
Australia Toll-Free: 1 800 091 250
USA: 1 412 317 0088
Other Countries: +27-11-305-2030
Playback code: 10602
(Please contact Stephanie Leclercq from Tielle Communications on
+27 (0)83 307 7587 / stephaniel@tielle.co.za to RSVP or if you have any
queries.)
It is anticipated that the results for the six months ended 31 December 2008
will be published on or about 11 March 2009.
On behalf of the board
Roger Jardine
Chief Executive Officer
Date: 13/02/2009 13:00:02 Produced by the JSE SENS Department.
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