VenFin set to own Intervid

By Iain Scott, ITWeb group consulting editor

Johannesburg, 31 May 2004

Durban-based Intervid looks set to become a wholly owned subsidiary of fellow JSE-listed group VenFin.

The Competition Commission ruled last week in favour of the acquisition by VenFin of the 30.24 million Intervid shares previously owned by the Howard family.

VenFin will now have an effective 64.92% interest in Intervid, through its own stake as well as the indirect holding through associate RFS Holdings.

At the same time, Intervid says talks with RFS have failed. RFS, Intervid`s principal loan creditor, holds a convertible bond giving it the right to convert its loan of $50 million into Intervid shares from June 2005.

Intervid had been concerned that the conversion would dilute the holdings of existing shareholders, and the failed negotiations centred on the possibility of limiting the conversion shareholding to a maximum of 65% of Intervid.

There will now be no limit to the conversion next year.

VenFin agreed in March to buy the Howard family`s approximately 33% shareholding at 34c a share after a reversal of a shareholder revolt staged by the family.

The new Intervid board appointed by the Howard family quit only a week after being formed and was replaced by the company`s previous board.

VenFin agreed to buy the Howard family stake after the family declined an offer to buy VenFin`s shares.

Intervid says a further announcement regarding a mandatory offer by VenFin to minority shareholders will be made "in due course".