PETMIN LIMITED - Tendele Litigation Update

Release Date: 24/05/2017 09:25
Code(s): PET
 
Wrap Text
Tendele Litigation Update

PETMIN LIMITED 
Incorporated in the Republic of South Africa
Registration Number 1972/001062/06
Share Code JSE: PET
ISIN: ZAE000076014
("Petmin" or the "Company")

Update on status of litigation between Petmin's subsidiary, Tendele Coal Mining 
Proprietary Limited and one of its customers 

As previously disclosed in more detail in paragraph 57 of the combined offer circular to 
Petmin shareholders posted on 3 April 2017, Petmin's subsidiary, Tendele Coal Mining 
Proprietary Limited ("Tendele"), is currently involved in legal proceedings with one of 
its former customers ("Customer") pertaining to disputes arising from a supply of 
discard agreement ("Contract"). 

On 14 September 2015 Tendele instituted proceedings in the High Court of South 
Africa, Gauteng Division, Pretoria ("High Court Action"), in terms of which it sought, 
amongst other things, declaratory relief to the effect that the Contract is void or 
voidable, premised on the grounds of fraud, bribery and corruption.
 
Petmin announced on 3 December 2015 on SENS that it had withdrawn from the 
arbitration proceedings relating to the disputes arising from the Contract as a result of 
information that had come to Tendele's and the Company's attention during the course 
of the arbitration proceedings. Notwithstanding Tendele's withdrawal from the 
arbitration proceedings and the institution of the High Court Action, the arbitration 
proceedings continued to finality at the insistence of the Customer on an uncontested 
basis and the arbitrator delivered an adverse award against Tendele. The Customer was 
notified that Tendele would oppose any attempt to have the arbitration award made an 
order of Court. 

On 4 February 2016 Tendele was notified that the Customer had applied to the High 
Court of South Africa, Gauteng Local Division, Johannesburg to make the arbitration 
award an order of the Court ("Enforcement Application"). Tendele opposed the 
Enforcement Application and brought a counter application for an order declaring that 
the Contract is void or voidable and to consolidate all the litigation in the High Court of 
South Africa, Gauteng Division, Pretoria.
 
On 17 May 2017 Tendele received a notice from the Customer in which the Customer 
withdrew its Enforcement Application and tendered Tendele's costs on a party to party 
scale. 

Tendele's remaining litigation, including the High Court Action continues.


Enquiries:

Petmin 
Bradley Doig
+27 11 706 1644

Media 
Jonathon Rees (Communications and investor relations)
+27 76 185 1827

Sponsor and Corporate Adviser
River Group
Andrew Lianos 
+27 834 408 365


Johannesburg
24 May 2017



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