Update announcement regarding the Altron Nexus / City of Tshwane Municipal Broadband Network Judgement
Update announcement regarding the Altron Nexus / City of Tshwane Municipal Broadband Network Judgement ALLIED ELECTRONICS CORPORATION LIMITED (Incorporated in the Republic of South Africa) (Registration number 1947/024583/06) Share code: AEL ISIN: ZAE000191342 (“Altron” or “the Company” or “the Group”) UPDATE ANNOUNCEMENT REGARDING THE ALTRON NEXUS / CITY OF TSHWANE MUNICIPAL BROADBAND NETWORK JUDGEMENT Shareholders are referred to the announcement released on SENS on 17 July 2019 and the subsequent updated SENS announcement published on 19 September 2020 regarding the judgement handed down in the Gauteng High Court in Pretoria on 16 July 2019. The judgement related to the setting aside of the award of the Altron Nexus (previously Altech Radio Holdings (Pty) Limited / City of Tshwane ("CoT") Municipal Broadband Network contract on the basis of primarily internal processes not having been followed by the CoT in the awarding of the tender. The contract was awarded to a special purpose vehicle, Thobela Telecoms (RF) Proprietary Limited ("Thobela Telecoms") in June 2015, in which Altron Nexus is involved as the primary network designer and architect, supplier of broadband equipment and related services, as well as being a minority shareholder in Thobela Telecoms. In September 2020, Altron’s shareholders were notified that Thobela Telecoms were granted leave to appeal the decision of the High Court in the Supreme Court of Appeal (“SCA”). Altron appealed the matter in the SCA and the court ruled in favour of Altron. The CoT referred the matter to the Constitutional Court around December 2020 and sought leave to appeal the decision of the SCA. Given that the CoT had filed their leave to appeal outside of the Rules of court, in an order dated 19 May 2021, the Constitutional Court refused the application for condonation brought by the CoT for the late filing of its leave to appeal application, additionally, the court dismissed the CoT’s application for leave to appeal with costs ordering that application did not have any reasonable prospects of success. The Board and management are pleased with the outcome of the Constitutional Court’s order and note that this risk and litigation has been mitigated and resolved accordingly. Johannesburg Sponsor: Investec Bank Limited 21 May 2021 Date: 21-05-2021 09:10:00 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.