Investigations have yet to determine how the Vlok family`s Idion shares were sold in error to Canada`s DataMirror.
After failing in its hostile takeover bid, DataMirror recently extended indefinitely its offer to buy Idion shares at 180c each.
Despite rumours yesterday afternoon that Marius Vlok, father of Idion CEO Nicolaas Vlok, had sold shares after losing confidence in Idion, it turned out that he had not intended to sell at all.
Marius Vlok says the first he heard of the incident was last night when a journalist contacted him to ask why he had accepted DataMirror`s offer.
The 1.169 million Idion shares (belonging to Vlok, his wife Rachel, and his younger son), as well as shares in other companies, were submitted to broker DWM Securities for dematerialisation only. Dematerialisation is the conversion of paper share certificates to an electronic record in terms of the country`s new electronic settlement system.
However, what should have been a simple procedure then turned sour.
"My instructions were plain and clear to DWM - please dematerialise my shares," Vlok says.
DWM equities trader Edwin Smit confirms that the shares were sent in only for dematerialisation.
"Mr Vlok gave no instruction whatsoever to sell any shares," he adds.
However, after DWM submitted the shares to Computershare Custodial Services, they were reportedly forwarded to BOE Merchant Bank with the understanding that the shares were to be sold to DataMirror in terms of the offer.
Vlok, who was with his attorney this morning, says there was no letter of surrender and none of the necessary forms were filled in.
"Nobody is prepared to accept liability, because there is money involved," he comments. He is in talks with his attorney to attempt to arrive at an amicable arrangement. Vlok says his attorney believes the sale can be reversed because of the absence of an instruction to sell.
BOE`s Andre Geldenhuys says "there are a lot of things happening" and he will be able to comment only once certain issues have been resolved.
Calls to Computershare were referred to corporate finance manager Garth Calder, but several attempts to reach him were unsuccessful.
The various parties involved in the matter say that investigations are underway. It is understood that BOE and DWM will make further statements later today or tomorrow.
The Idion share lost 4c to close at 181c on the JSE yesterday.
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