PFG - Pioneer Food Group Limited - Competition Commission Referral issued for
PFG
PFG
PFG - Pioneer Food Group Limited - Competition Commission Referral issued for
the Wheat Milling Market and further cautionary announcement
PIONEER FOOD GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1996/017676/06)
JSE share code: PFG
ISIN: ZAE000118279
("the Company" or "Pioneer Foods")
Competition Commission Referral issued for the Wheat Milling Market and
further cautionary announcement
Pioneer Foods yesterday received notification, as anticipated, from the
Competition Commission ("the Commission") that it has referred its
investigation into the wheat milling market ("milling matter") to the
Competition Tribunal for adjudication. Pioneer Foods is named as a respondent
in the case together with other industry participants.
The Commission has recommended an administrative penalty of R1.6 billion or
10% of the 2009 annual group turnover of Pioneer Foods, although the referral
refers to conduct up to the 2007 financial year, with respect to the
Company`s alleged transgressions of the Competition Act in the wheat milling
market.
As mentioned before, the Company wants to resolve the milling and other
matters through cooperation with the Commission, and without recourse to
proceedings before the Competition Tribunal, if possible. The Company has
already met the Commission in this regard.
The administrative penalty sought by the Commission in the milling matter may
be adjusted lower depending on the outcome of continuing negotiations with
the Commission.
The Company is committed to fully cooperate with the Commission in all
investigations where the Commission seeks its assistance.
Shareholders are further referred to the cautionary announcement dated 25
February 2010 and are advised to continue to exercise caution when dealing in
their Pioneer Foods shares until a further announcement is made.
Pioneer Foods will revert to shareholders on further progress in respect of
this and other matters once more certainty exists.
Paarl
16 March 2010
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 16/03/2010 12:01:25 Produced by the JSE SENS Department.
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