Metrofile Holdings, formerly MGX Holdings, is offering shareholders in EC-Hold R2.40 for every share they own in the now liquidated company.
The saga dates to 2001, when the Securities Regulation Panel`s executive committee ruled that MGX and the Mandy Rebecca Price Trust had acted in concert when MGX acquired EC-Hold, resulting in a combined stake that exceeded the 35% level at which a compulsory offer to minorities is triggered.
MGX had offered EC-Hold shareholders R1 a share, but the full panel of the SRP ruled in 2002 that the shareholders be offered R2.40.
Despite losing an appeal, MGX refused to pay the amount, maintaining that it had done no wrong. The SRP then took the matter to the High Court.
EC-Hold has subsequently been delisted, deregistered and liquidated, and MGX has undergone a change of management and name to Metrofile Holdings.
Metrofile has issued a notice of firm intention to make the R2.40 offer to shareholders of EC-Hold as at 11 October 1999, payable against delivery of their documents of title.
"In January 2006, the current board of directors of Metrofile Holdings and the SRP acknowledged their common intention and the desirability and urgency of bringing this matter to a speedy conclusion," the notice reads.
"Metrofile Holdings has therefore decided to make an offer to the offerees in terms of the agreement in order to finalise this matter in an expeditious manner."
It adds that the offer is not conditional on a minimum acceptance and that it has received irrevocable undertakings not to accept the offer from former MGX chairman Ronnie Price and any interest or shareholding under control of him or any member of his family.
Metrofile says the offer does not imply an admission that any concert activity took place, or that there is an obligation to make a mandatory offer.
The offer opens at 9am on 30 March and closes at noon on 20 April.
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