Ownership of old VenFin assets settled

By Iain Scott, ITWeb group consulting editor

Johannesburg, 15 Mar 2006

The company housing the VenFin assets not acquired by Vodafone has announced the results of its share subscription offer.

Business Venture Investments No 951, known as Newco, says it received valid applications for about 203.83 million shares at R11.24 per share.

"This is in excess of the minimum subscription requirement of 88 967 972 ordinary shares imposed by Newco and the subscription offer has therefore become unconditional," the company announced last night.

However, the subscription offer was not fully subscribed, with the result that the underwriter, Rembrandt Trust, is to take up an additional 53.46 million Newco shares.

Rembrandt Trust had already subscribed for 35.51 million Newco B ordinary shares at R11.24 each.

Newco was formed to acquire all the assets of VenFin except the 15% stake in cellular network operator Vodacom. This was after UK cellular operator Vodafone launched a buyout of VenFin, with the sole goal of acquiring the Vodacom stake and increasing its own shareholding in Vodacom to 50%.

The assets sold to Newco include shareholdings in telecommunications-focused company Psitek, as well as technology interests including a $100 Dimension Data convertible bond, Idion Technology Holdings, Comsco Intervid, Tracker and GenuOne.

Other investments are in the media and financial and risk sectors, as well as equity funds.

Newco, which paid R5 billion for the assets, is being incorporated with the same share capital as VenFin, and all VenFin shareholders who accepted Vodafone`s offer received a pro-rata right from Newco to use some of the proceeds from selling their shares to buy shares in Newco.

The Newco offer closed on Monday.