STEFANUTTI STOCKS HOLDINGS LIMITED - Project Arbitration Award

Project Arbitration Award

Stefanutti Stocks Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/003767/06)
Share code: SSK        ISIN: ZAE000123766
(Stefanutti Stocks or the group)


PROJECT ARBITRATION AWARD


Stefanutti Stocks hereby provides shareholders with an update on the outcome from a process relating to a
contractual claim on a specific project as noted in the “Restructuring Plan Update” included in the Unaudited
Condensed Consolidated Results of Stefanutti Stocks for the 6 months ended 31 August 2022 released on
24 November 2022.


In December 2016, Stefanutti Stocks formed a joint venture on a 50/50 basis with Consolidated Contractors
Company (Kuwait) W.L.L. (the JV) for the construction of the Kalabo-Sikongo-Angola border gate road in the
western province of Zambia, a public road project (the Contract). Due to the employer’s failure to pay the JV’s
interim payment certificates, the JV terminated the Contract on 19 August 2019. This resulted in a claim, which
claim was referred to arbitration before a tribunal (the Arbitral Tribunal) in terms of the Contract. The arbitration
was conducted in accordance with the provisions of the rules of Arbitration Act No. 19 of 2000 of Zambia (the
Act).


Shareholders are advised that on 29 November 2022, the Arbitral Tribunal released its award to the parties
and has awarded as follows:


1.      The JV is entitled to be paid an amount of Zambian Kwacha 510 million divided in the following
        currencies:
        a.    United States Dollars 21 million
        b.    South African Rands 81 million and
        c.    Zambian Kwacha 148 million;
2.      The JV is entitled to be paid interest on the aforesaid amount as from 30 April 2022 to date of payment,
        calculated at the rate applicable to such currencies; and
3.      The JV is entitled to costs incurred in the arbitration.


In terms of the Act, the award made by the Arbitral Tribunal is final and binding and shall be enforceable upon
a successful application to a competent court. However, an arbitral award may be set aside on procedural
grounds if such procedures were not correctly applied during the arbitration proceedings.


At this stage, even though the award may become enforceable, uncertainty exists with respect to the timing
and quantum of receipts. As soon as Stefanutti Stocks has better insight and understanding as to quantum
and timing of receipts, shareholders will be advised accordingly.

Johannesburg
30 November 2022
Sponsor: Bridge Capital Advisors Proprietary Limited

Date: 30-11-2022 03:55:00
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