Kpone gas- and oil- fired combined cycle epc power plant - renewal of cautionary announcement
Group Five Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1969/000032/06)
Share code: GRF ISIN: ZAE000027405
(‘Group Five’ or ‘the Company’ or ‘the Group’)
KPONE GAS- AND OIL-FIRED COMBINED CYCLE EPC POWER PLANT - RENEWAL OF
As announced to the market in December 2018, following the unlawful termination of the
Group’s Kpone contract, the client, Cenpower, instituted claims and demands on Group Five.
The demands to the Group’s bank guarantee providers for the payment of the full value of
bank guarantees in issue of US$106,5 million were adhered to and paid out to the client.
Payment was made on the basis of the legal requirements of on-demand bonds, which state
that bonds must be separated from the contract and their related contractual claims and
disputes, and therefore not on the merits of the contractual claims presented by the client.
In terms of the contractual process, the Group and its local and international external,
experienced legal experts continue to progress its contractual rights and entitlements for
payment of all amounts due and owing under the contract, including the recovery of delay
damages (paid in terms of the guarantees) and other claims against the client. The Group
expects to finalise the majority of these counter claims over the next three to four months.
After this, these claims will be submitted to the International Chamber of Commerce (ICC) in
Paris for the resolution of the disputes through expert proceedings. This is a much faster
process for resolution of disputes than arbitration. The Group expects a ruling to be made by
the end of 2019.
Any amount the Group will be held liable for (and/or entitled to) needs to either be agreed
between the parties or determined through the dispute resolution mechanism in the contract
prior to payment thereof. The amounts already paid do not reflect the counter claims against
the client and other parties the Group is legally entitled to and is pursuing.
Renewal of cautionary announcement
The cautionary announcement released on 11 December 2018 remains in place, as the above
information may have a material impact on the price of Group Five’s securities. Shareholders
are advised to continue to exercise caution when trading in the Company’s securities until a
further announcement is made.
30 January 2019
Nedbank Corporate and Investment Banking
Date: 30/01/2019 08:58:00 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.
Email this JSE Sens Item to a Friend.