AEL: ALLIED ELECTRONICS CORPORATION LIMITED - 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
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