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Petmin - Tendele litigation update
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 (Pty) Ltd. ("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Petmin announced on 3 December 2015 on SENS that it had withdrawn from the arbitration proceedings relating to the disputes arising from the contract as a result of information that had come to Tendele's and the company's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.
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