https://www.engineeringnews.co.za

Randgold and Exploration, PwC reach agreement over legal wrangle

17th April 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Minerals explorer Randgold & Exploration (R&E) and its former auditor PwC have concluded a settlement agreement in respect of a legal dispute arising from PwC's alleged failure to audit R&E properly, resulting in losses claimed by R&E, which are disputed by the auditing firm.

On August 3, 2008, R&E instituted sixteen civil action claims against PwC in the High Court of South Africa, claiming “billions of rands” worth of damages from PwC in respect of the financial period 2000 to 2003.

PwC defended the action, denying any wrongdoing on its part and that it was liable to R&E in the amount claimed, or at all.

The matter was last year referred to an arbitration process.

Without any admission of liability or making any concessions on the part of either R&E or PWC, and “purely with a view to avoiding costly litigation and          for commercial reasons”, the parties had since decided to settle the claim, in terms of which PwC would make payment to R&E of R150-million.

The implementation of the settlement agreement remained subject to the condition that R&E procured written irrevocable undertakings from          shareholders holding at least 51% of the company to vote in favour of the resolution.

R&E said in a statement on Wednesday that the claim against PwC was “robust” and that good progress had been made in preparing for the arbitration, but noted that the matter was “complex” and it was estimated that the arbitration process would endure for a lengthy period.

“The PwC offer of R150-million, or R2.10/share, represents 80% of the group’s [net asset value] and 99% of its weighted average share price, which makes the offer significant.      

“The board has consistently approached the company’s recovery process on a commercial basis and has concluded that the settlement offer by PwC is      economically attractive and should be proposed to shareholders,” R&E stated

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

Showroom

M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 
Alco-Safe
Alco-Safe

An unmanned breathalyser that is made to be tough and simple to use. Can be used in any environment for operator-free breathalyser testing.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.09 0.154s - 158pq - 4rq
Subscribe Now