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AEG - Aveng Limited - Update on competition commission investigations

Release Date: 03/02/2011 16:01
Code(s): AEG
Wrap Text

AEG - Aveng Limited - Update on competition commission investigations AVENG LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1944/018119/06) ISIN: ZAE000111829 SHARE CODE: AEG ("Aveng", "the Group" or "the Company") UPDATE ON COMPETITION COMMISSION INVESTIGATIONS Aveng refers its shareholders to the various SENS announcements issued during 2008, 2009 and 2010 in which shareholders have been kept informed of the Group`s ongoing cooperation with the Competition Commission. Aveng notes the announcement by the Competition Commission on 1 February 2011 of its investigation into widespread anti-competitive behaviour in the construction sector and its "fast-track settlement" process for companies to come forward and disclose any known irregular practices, in return for more lenient penalties. This announcement by the Competition Commission is in line with the proactive stance taken by Aveng in rooting out historical anti-competitive behaviour. Aveng remains committed to fully co-operating with the Competition Commission and ensuring that its employees, management and directors do not engage in any conduct which constitutes a prohibited practice. Aveng has put in place numerous initiatives to ensure good corporate governance across all its operations. In 2008 a competition law compliance review was undertaken and efforts were further intensified in 2009 with the roll-out of the Anti-Corruption Framework, a group competition law compliance programme as well as internal education and awareness programmes. Employees of Aveng have been afforded the opportunity to report anti-competitive practices through an immunity hotline and a "Tip-Off Anonymous" hotline. As a result, several matters involving anti-competitive conduct were uncovered and resulted in the submission of various markers in respect of these possible contraventions of competition legislation. In its SENS announcement of 10 August 2010, Aveng informed shareholders that an investigation involving the Steeledale Mesh business unit had been referred to the Competition Tribunal for the hearing of evidence and argument. This matter has been set down for hearing by the Competition Tribunal for the week of 28 February 2011. On 1 February 2011, Steeledale was named as one of 20 respondents in the Competition Commission`s referral to the Competition Tribunal in respect of its investigation in the reinforcing steel bar market. In the Commission`s referral affidavit, it states that the respondents entered into collusive arrangements. The Commission is requesting that the Competition Tribunal impose an administrative penalty of 10% of the respondent`s annual turnover for the preceding financial year. Shareholders were also advised of this referral in the Group`s SENS announcement of 10 August 2010. We are reviewing the affidavit of the Competition Commission and will engage with them in this process. The Aveng Group and its board of directors have zero tolerance for anti- competitive behaviour. Management continues to work closely with the competition authorities and will continue to update the market. The Aveng Group is currently in a closed period and will release the interim results for the half year ended 31 December 2010 on or about 14 March 2011. Rivonia 3 February 2011 Sponsor: J.P. Morgan Equities Limited Date: 03/02/2011 16:01:09 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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