Although hostile bidder DataMirror has not yet decided what to do with its 36.9% stake in Idion, the Canadian group`s CEO, Nigel Stokes, says he would sell "in a heartbeat" if he were offered the right price.
If the minority shareholders say goodbye to this offer they will never see 180c again. They have kicked a gift horse in the ass.
Nigel Stokes, CEO, DataMirror
"There is a lot of uncertainty around the stake," he admitted last night. "The results are coming out and the company made some forecasts which we believe are very bullish. We`ll wait and see how they`re doing, but we haven`t been impressed with management so far and I don`t think we`re going to be impressed with management now."
The Canadian group`s unconditional offer of 180c per Idion share closes today and coincides with Idion`s annual general meeting (AGM), at which Stokes says DataMirror will make some noise.
"If the minority shareholders say goodbye to this offer they will never see 180c again," Stokes says. "They have kicked a gift horse in the ass."
He adds that DataMirror`s legal counsel will be present at the AGM and the group is ready to raise serious material issues, including corporate governance and allegations of concert party activity.
Stokes says the original intention of DataMirror`s bid was not simply to gain control of Idion.
"We want to combine the two companies because we see a lot of benefit in that, not just control it. But we weren`t even allowed to discuss it with the management team.
"Given the treatment DataMirror had, I don`t think people need to worry about another foreign company coming in like we did."
While DataMirror still sees value in consolidating its industry and combining the two companies, Stokes says he is not going to bid higher than 180c. "I have never said it is worth more than 180c," he adds. "Our offer was more than fair value, and anyone who says it`s not fair value is insane.
"I haven`t quite decided what to do with the shares but if someone says: 'Here is 180c or 185c`, I would be out in a heartbeat."
Stokes says while the Idion management team has "wrapped itself in the South African flag" during the bid period, it is not about that. "It`s about a lifestyle. It`s about a 30-year-old man earning R4 million a year and living in Newport Beach, California."
Commenting on yesterday`s announcement that Idion was selling its South African business to CS Holdings, Stokes says DataMirror would have looked after the South African job base better than Idion.
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