New twist in Intervid saga

By Iain Scott, ITWeb group consulting editor

Johannesburg, 02 Mar 2004

The drama at JSE-listed Intervid took a new turn yesterday with minor shareholder VenFin stepping in to take control of the embattled company.

This is the latest move in a series of dramatic events that saw the company`s board replaced and then reinstated in just a week.

VenFin has agreed to buy the shareholding of the Howard family, who were the main force behind the events of last week.

The agreement to buy the family`s shares at 34c each was reached after the Howard family declined to acquire VenFin`s shares in Intervid at the same price.

The VenFin directors were in a board meeting this morning and could not be contacted for details beyond those provided in an official statement.

VenFin`s acquisition means it will now hold a 49.78% stake in Intervid. In terms of the Securities Regulation Code on Takeovers and Mergers, this has triggered a mandatory offer to all other minority shareholders.

"The agreement represents the resolution of the dispute between VenFin and the Howard family regarding, among other things, the management and further funding of Intervid," the VenFin statement says.

"VenFin will now resume discussions with the Intervid board and its external financiers, with a view to supporting the continuation of Intervid`s turnaround."

Intervid says director James Howard has left its employ and his status has changed to that of non-executive director.

This follows the resignation of chairman Rob Howard and three other directors who had been nominated by the Howard family.

The Howard family called a shareholders` meeting last Monday to vote on removing Bill Lambert as non-executive chairman and to appoint its nominees to the board.

Lambert resigned as the meeting started. CEO Mark Taylor and financial director Wayne Jaggard also quit the board during the meeting. Johann Pieterse also resigned his non-executive directorship.

Rob Howard replaced Lambert as chairman and the nominees were appointed to the board.

However, on Friday evening Intervid said the actions had been reversed and the previous board had been reappointed.