Canada`s final offer of 180c per Idion share expired yesterday, but the battle continues after it made the offer unconditional for an indefinite period.
The Canadian company has managed to net almost 37% of Idion`s shares, leaving it by far the largest individual shareholder.
In terms of South African law, it may not increase its offer price for another year, but it has now made the 180c offer unconditional for an indefinite period, meaning that any Idion shareholders wishing to sell will get their cash.
Idion management and allies own about 54% of Idion`s shares.
Whereas it previously intended to gain outright control of Idion, the company now seems satisfied with being a large shareholder.
"We decided to go unconditional to allow other shareholders to realise the value we are offering," says DataMirror CEO Nigel Stokes. "As we have said before, the time has come for DataMirror and Idion to work together. Idion`s management should no longer be driven by pride, but should look after shareholders` interest now."
Stokes has said that there are synergies between the two companies.
However, Idion CEO Nicolaas Vlok is sticking to his guns. "Notwithstanding that DataMirror has made its offer unconditional, we are very confident that they will not achieve their objective of taking control of Idion," he says.
"We have undertakings from more than 54% of shareholders to reject the final offer because it is significantly below the inherent value of Idion. We therefore believe that when DataMirror announce their final holding, they will be no more than a minority shareholder.
"DataMirror has sought to position itself as a competitor of Idion and as such will not be granted board representation. In addition, DataMirror will not gain access to Idion`s technology."
Vlok says he believes the takeover bid was an attempt to access Idion`s technology, client base, sales channel and worldwide reach. He adds that Idion sees no value for its shareholders in proposals to put the two companies together.
"They will now have to answer questions, not only from us but also from their own shareholders, as to what they will do with this shareholding over the next 12 months."
Idion corporate communications director Corn'e Arnold says the group will issue a more detailed response to the matter after studying it.
However, she says the main thing for Idion now is to focus on its business. "We are ultimately happy that they`ve not succeeded in terms of control. That`s another milestone. One just needs to take it forward."
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