After offering 180c for Idion Technology Holdings shares in its final bid to entice investors to sell, DataMirror has advised the market that it now controls 18.66% of Idion, having bought a further 2.17 million Idion shares.
DataMirror made its final offer to Idion shareholders at 180c per share, saying it considered Idion`s forecasts for the year "optimistic" and the new offer as fair.
The final increased offer values Idion at R202.7 million, a premium of 177% on the first offer of 65c.
DataMirror also pointed out the new offer is a 22% premium to the closing share price of 148c on 6 May, the day before the final offer was made.
The Canadian company says it views the profit forecast released by Idion as "optimistic", citing the "soft North American market" in which Idion has to operate and pointing to the 15% decline in the Nasdaq since 18 March, the day it made its first offer.
DataMirror also disparaged Idion`s "assumption that new licence sales will return to levels in the 2000 financial year" in the prevailing market conditions.
Meanwhile, DataMirror has bought an additional 2.17 million Idion shares at an average price of 179.87c, giving it control of 18.66% of the local company.
The increase from its 16.72% shareholding as of 6 May, to the current standing occurred yesterday, suggesting that shareholders were cashing in on the increased value of the share, which was trading at just 57c when DataMirror first announced its hostile bid.
Corn'e Arnold, Idion`s corporate communications director, says the company cannot comment on the increased shareholding as yet, but says this is a normal occurrence in a hostile takeover bid, and believes the available shares that were snapped up by DataMirror were sold by investors wishing to profit from the premium in the share price.
The final offer depends on whether DataMirror can acquire 50% plus one share of Idion`s issued shares.
Management within Idion as well as its subsidiaries currently holds 44% and other shareholders, including institutional investors, hold a further 9% of issued shares.
Idion says these shareholders have undertaken to refrain from commenting on the goings on at Idion until such time as the independent advisory committee gives the Idion board a full report back on the latest offer.
Idion says this will take place after independent advisor PricewaterhouseCoopers has assessed and advised the board on the offer, which will take place no later than 17 May, at which time it will communicate with the market.
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