MGX is considering alternative courses of action to resolve the controversy over its acquisition of EC-Hold.
After a change of management at MGX last year, which saw the appointment of turnaround specialist Peter Flack as CEO, the group said in January that it would seek to put the EC-Hold matter to bed.
MGX has for some time been engaged in a dispute with the Securities Regulation Panel (SRP), whose executive committee ruled in mid-2001 that MGX and the Mandy Rebecca Price Trust had acted in concert when the EC-Hold acquisition was made.
Whereas MGX originally offered EC-Hold shareholders R1 a share, the full panel of the SRP ordered last year that the shareholders be offered R2.40 a share.
MGX continued to maintain it had done no wrong and said it was prepared to fight in court if legal proceedings were instituted.
However, Flack said in January that resolving the issue was now a priority and the group had approached the SRP with regard to a process aimed at putting the matter to bed.
EC-Hold issued a further cautionary notice last night saying that MGX is considering its alternative courses of action "that could be taken as a result of the Securities Regulation Panel ruling of 19 March 2002".
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