ERP.com CEO comments on offer

By Iain Scott, ITWeb group consulting editor

Johannesburg, 17 Feb 2006

ERP.com management views the expression of intent to acquire the group as a serious bid, says CEO Dean Brazier.

"We hadn`t put ourselves on the market," Brazier says. "It came out of a discussion we had on the future of the business, and the other party liked what it heard.

"It`s not hostile in anyway and we believe it is a serious bid. It`s not something you put in a cautionary, but I`d like to emphasise that the party is known to management."

Brazier, who co-founded ERP.com with former CEO Peter Forsyth, says it is not unusual for the company to receive approaches, but this is the first one that management considered serious enough to warrant publishing a cautionary notice.

He confirms that the potential bidder is interested in buying the whole group, and not just a part of it.

Forsyth, who stepped down last year, says he is not party to the process and is now just a shareholder in ERP.com.

"I view it as an investment," he says. "Obviously I have a personal attachment to the company but I see it as an investment. If it makes sense, I will vote for it as a shareholder."

He says while he has no idea of what the offer entails, he would hope that it reflects the value of the company.

"Perhaps I have a better idea of the value than other shareholders," he says.

He says management has never held more than 25% to 30% of ERP.com. "So the shareholders will make the call, but I have confidence that the board will discharge its responsibility. It`s a good board."

Forsyth says if he were still CEO, and a serious offer for the company were made that reflected its value, he would put sentimentality aside and present it to the shareholders.

"I have no doubt that Dean will make a commercial decision," he adds.

The ERP.com share was trading at 188c on the JSE early this morning, down 5c or 2.6% from yesterday`s close. Yesterday the share gained 8c or 4.3%.