Sharenet Sites 
Sharenet Sites
GRF - Group Five Limited - Final update on iLima BEE transaction GROUP FIVE LIMITED (Incorporated in the Republic of South Africa) (Registration number 1969/000032/06) Share code: GRF ISIN: ZAE 000027405 ("Group Five" or "the company" or "the group") Update to shareholders Final update on iLima BEE transaction Group Five advised shareholders on 14 April 2010, that its black economic empowerment ("BEE") transaction with iLima Consortium (Proprietary) Limited ("iLima") was being unwound and that this would entail the return of the shares held by iLima to the company ("the unwind"). Shareholders are now advised that the 11 015 959 Group Five shares held by iLima have been delisted and subsequently cancelled. Further, shareholders are reminded that the unwind of the iLima element of the Group Five BEE transaction does not impact upon Group Five`s other BEE shareholders or Group Five`s BEE management and employee schemes. Despite the unwind, Group Five`s overall broad based BEE rating remains at Level 2 due to improvements in areas of its scorecard, other than ownership, such as preferential procurement, employment equity, skills transfer and training. Update on disposal of construction materials segment of business The group remains under cautionary as it progresses the disposal of these assets. Interested parties for all related businesses have been identified and offers have been received. The group does however expect that some write down against the current carrying net asset value of these businesses will be required. The group`s intent is to be substantially complete with its sale decision by 2012 financial year end. The group reports that the H2 operating performance for this segment is expected to be weaker than in H1. Further to this the group provides additional information on the following: Termination of pipeline contract in Middle East The group has previously reported that its Jordan pipeline contract was terminated by mutual consent. The group communicated to its interested stakeholders in February 2012 that additional losses were possible during final account negotiations. At the time this exposure could not be reliably estimated. The group advises stakeholders that this contract has been fully demobilised in H2 F2012 and that commercial negotiations are currently underway. A final outcome on the terminated pipeline is likely by June 2012 however the group expects that this will result in contract losses in addition to those previously reported. Financial results Although the group`s operations including Investment and Concessions, Manufacturing and the remainder of the Construction operations are performing in line with expectations, F2012 is expected to be weaker than previously guided at the interim reporting date due to the close out of the Middle East operations and contracts, and the weakened Construction Materials operating performance and position. The aforementioned information has not been reviewed or reported on by the company`s auditors and a trading update will be issued by the group as soon as practically possible. Johannesburg 29 May 2012 Sponsor Nedbank Capital Date: 29/05/2012 07:30:01 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.
