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AEG - Aveng Limited - Trading Statement and update on Competition related

Release Date: 01/03/2011 13:47
Code(s): AEG
Wrap Text

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 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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