DataMirror targets Idion again

By Iain Scott for Idion Technology Holdings

Johannesburg, 16 Oct 2003

Canadian-based DataMirror, Idion`s largest shareholder after a hostile takeover bid last year, is once again buying up Idion shares.

DataMirror, which has notified Idion that it bought about 4.31 million shares last Friday, says it is rapidly approaching the level at which the Securities Regulation Code stipulates that an offer to minority shareholders would have to be made.

In terms of the code, a shareholder owning between 34.9% and 50% of a company must make an offer to minority shareholders if it buys more than 5% in any 12-month period. By the end of last year`s hostile takeover bid, DataMirror owned 38.8% of Idion.

DataMirror also says that should the 5% level be reached, the offer will in all probability include a premium to the mandatory offer price.

Idion has responded by issuing a statement to the effect that it is uncertain whether DataMirror will reach the 5% level and even if it does, it is not legally obliged to offer a premium to the mandatory offer price.

It says Idion employees who are also shareholders in Idion received a notification by DataMirror saying that it believes 220c per share is a significant premium to fair market value.

Idion has consistently maintained that DataMirror`s real target is its multi-platform managed availability solution, Orion. Idion recently announced the worldwide launch of the product.