Intervid - Raising Of Funding To Expand Offshore O
INTERVID LIMITED
(Registration number 1999/011483/06)
("Intervid" or "the company")
RAISING OF FUNDING TO EXPAND OFFSHORE OPERATIONS
1. INTRODUCTION
Further to the cautionary announcement issued on 18 January 2001, BoE Merchant
Bank, a division of BoE Bank Limited, is authorised to announce that agreement
has been reached between Intervid and RFS Holdings Limited ("RFS"), an
associated company of VenFin Limited ("VenFin"), to raise funds for Intervid's
international expansion.
2. SALIENT TERMS OF AGREEMENT
In terms of the agreement:
* RFS will fund a foreign subsidiary of Intervid ("Intervid International") in
the amount of $50 million;
* the funding will be by way of a loan convertible into equity of Intervid
International;
* the loan will be convertible into a minimum of 30% and a maximum of 50% of
the equity of Intervid International. Such conversion being determined by the
performance of Intervid International;
* the loan will be convertible after four years, but within six years, of the
funding; and
* an option will be granted to RFS to assign the convertible loan to Intervid,
in consideration of the allotment and issue of Intervid ordinary shares ("the
option").
3. CONDITIONS PRECEDENT
The agreement is subject, inter alia, to the following conditions precedent:
* approval of the option by the shareholders of Intervid in general meeting; an
* approval by the South African Reserve Bank.
4. OFFSHORE EXPANSION
Intervid's primary business is the development, design, installation, financing
and servicing of customised, digital, visual information systems. It has
become increasingly apparent that Intervid's technology and business
methodology can compete on the international stage and the funding arrangement
enables the company to proceed with its strategy in this market.
5. CHANGE OF YEAR-END
Shareholders are also advised that the company has changed its year-end from
the end of February to 30 June. In accordance with the Listing Requirements of
the JSE Securities Exchange South Africa, an interim report for the second six
months period ending 28 February 2001 will be distributed to shareholders
within three months from the end of February 2001.
6. DOCUMENTATION
A circular, containing details about the option and a notice convening a
general meeting of the company for the approval thereof are in the course of
preparation and will be sent to shareholders in due course.
Durban
2 February 2001
Merchant Bank Sponsor
BoE Merchant Bank BoE Securities
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