GROUP FIVE LIMITED - Response to Competition Commission announcement

Response to Competition Commission announcement

Group Five Limited
(Registration number: 1969/000032/06)
(Incorporated in the Republic of South Africa)
Share Code: GRF ISIN Code: ZAE 000027405
("Group Five" or “the Company” or “the Group”)


Response to Competition Commission announcement

Shareholders are referred to the announcement issued by the Competition
Commission (“the Commission”) on 17 March 2015 in respect of the Commission's
case against Group Five on a particular project, the “Senekal Project” (the
rehabilitation of a section of the N5), and are advised that this project has now
been referred to the Competition Tribunal (“the Tribunal”). Shareholders are
referred to Group Five’s previous public announcements in this regard, most recently
the Group’s interim results released on SENS on 11 February 2015, in which the
Group advised that it was implicated by the Commission in four projects which were
not protected by immunity and which were not settled by Group Five due to
discernible factual and evidentiary discrepancies in the Commission's case.


Last month the Commission elected not to proceed further in respect of one of these
implicated projects, meaning Group Five now remains implicated in three projects.
As mentioned above, the Senekal Project was referred to the Tribunal on 17 March
2015 and, as previously announced on 12 November 2014, the "World Cup Stadia"
has also been referred to the Tribunal. One case therefore remains outstanding,
which may or may not be referred to the Tribunal, subject to the Commission’s
further investigations.


Group Five’s lawyers have advised that there are evidentiary hurdles in the
Commission's case in respect of the two referred projects and that the Group has
good prospects of success in opposing the Commission's referral of the matters. The
Company considers the referral of the projects a positive step towards fully
ventilating the issues in respect of the alleged conduct, interrogating the evidence in
the possession of the Commission and obtaining an objective decision on the
Group's liability from the Tribunal.


Whilst Group Five has been advised not to make any specific comments on the
quantum of any potential administrative penalty that may arise in respect of the
projects, Group Five confirms that it believes it is adequately covered by the
provision raised in the 2013 financial year against any potential penalty imposition.


Johannesburg
18 March 2015

Sponsor
Nedbank Capital

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