| Tue 1 Mar 2011, 13:47 | | AEG - Aveng Limited - Trading Statement and update on Competition related |
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AEG
AEG
AEG - Aveng Limited - Trading Statement and update on Competition related
matters
AVENG LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1944/018119/06)
ISIN: ZAE000111829
SHARE CODE: AEG
("Aveng" or "the Company")
TRADING STATEMENT AND UPDATE ON COMPETITION RELATED MATTERS
Further to the SENS announcement of 3 February 2011, the Aveng Group wishes to
advise shareholders that following discussions with the Competition Commission,
Aveng (Africa) Limited has entered into a settlement agreement with the
Commission to settle the two complaints against its Steeledale business unit.
The first complaint relates to historical anti-competitive conduct involving the
Steeledale Mesh business unit, and the second complaint, to historical collusion
in the reinforcing steel bar market.
The Aveng Group has informed shareholders of these two matters in previous SENS
announcements. The mesh matter was referred to the Competition Tribunal on 2
December 2009. On 1 February 2011, Steeledale was also named as one of 20
respondents in the Competition Commission`s referral to the Competition Tribunal
in respect of its investigation of collusion in the reinforcing steel bar
market.
In terms of the settlement agreement, Aveng (Africa) Limited has agreed to pay
an administrative penalty in the amount of R128 904 640, which represents 8% of
Steeledale`s annual turnover for the financial year ended 30 June 2008, for both
the mesh and reinforcing steel bar complaints. This settlement is in full and
final settlement of all alleged contraventions of the Competition Act by
Steeledale that are the subject of the Commission`s investigations and referrals
in terms of both complaints. It has been agreed with the Competition Commission
that the penalty will be paid in four equal instalments over a period of 24
months from the date of the Tribunal order.
In the light of these cases three employees of Steeledale have been suspended,
pending an internal enquiry.
The Aveng Group remains fully committed to cooperating with the Competition
Commission in rooting out collusive behaviour in the industry.
In accordance with paragraph 3.4(b) of the JSE Listings Requirements and further
to the Company`s trading update of 31 January 2011, shareholders are advised
that following the aforementioned settlement agreement, the Company now
anticipates that its headline earnings per share and earnings per share for the
six months to 31 December 2010 will be lower than that of the corresponding
interim period ended 31 December 2009 (163,4 cents and 164,1 respectively) by
between 30% and 35%.
The Company is currently in a closed period. The interim financial statements to
31 December 2010 are scheduled for release on Monday, 14 March 2011. The
financial information on which this statement is based has not been reviewed or
reported on by the Company`s auditors.
Rivonia
1 March 2011
Sponsor:
J.P. Morgan Equities Limited
Date: 01/03/2011 13:47:00 Produced by the JSE SENS Department.
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