| Fri 14 Jun 2002, 0:00 | | NEWS RELEASE |
|
ACTIVIST INVESTORS TO UTILISE DECTRONIC AS CATALYST FOR CHANGE
JOHANNESBURG - JSE Securities Exchange-listed Dectronic Limited announced
today that the company has entered into an agreement with AVSA Management
Limited (AVSAM), in terms of which it will issue 275 million ordinary shares
to AVSAM at 1 cent per share for an amount of R2.75 million. Subject to
certain suspensive conditions as well as the JSE Securities Exchange`s
endorsement on its continued listing, control of the company passes to
AVSAM, which will own over 75% and will rename the company as AVASA Holdings
Limited (AVASA).
Brian Myerson and Julian Treger, well-known subscribers to activist
investing and advisors to the London-based Active Value funds, will become
executive chairmen: "AVASA intends to acquire various undervalued and
significantly larger private or public companies in South Africa," says
Julian Treger. "Where necessary we will hire experts to turn each of these
businesses around, restoring them to sustained growth and profitability. We
will also appoint an operating officer and investment professionals who will
identify and execute suitable transactions on behalf of AVSAM, together with
the company`s advisors. The Dectronic transaction is to be effected by a
vote of shareholders within the next two months."
Corporate restructuring specialists at Gandalf Trust, Karl Gribnitz and Jan
Nel, are confident that the transaction negotiated with AVSAM will enhance
the fortunes of the company. Intimately familiar with the South African
corporate market, Gribnitz and Nel will continue to serve as non-executive
directors on the Dectronic`s board.
Myerson and Treger, who have 34 years combined experience in corporate
finance and securities investment as advisors on active special situation
investments in the UK, Continental Europe and South Africa, co-founded
Active Value Advisors in 1993. As at 30 April this year, Active Value had
over R6 billion under management and includes amongst its investors some of
the world`s largest governmental pension plans.
"With so many undervalued companies in South Africa, and with many under-
performing or wayward managements, we hope to realise significant value for
our AVASA`s shareholders," states Treger.
Dectronic listed on the venture capital market of the JSE Securities
Exchange in 1998, investing primarily in fledgling IT and engineering
orientated enterprises. Escalating overhead costs, combined with a shortfall
in sales, triggered the company`s financial demise. In an effort to restore
Dectronic to solvency, Gandalf Trust acquired 43,85% of its issued share
capital during August 2001.
END
Note to the Editor
Active Value formed its first fund in 1994 and they have advised eight funds
and four co-investment vehicles. To 3- April 2002, they have completed 34
investments, amongst which have featured some of the best publicised and
successful reorganisations and innovative transactions in the UK to date and
have more recently made significant inroads to the Continental European
Market.
Formed in 1994, Gandalf Trust offers an all-embracing corporate solution in
the area of mergers, acquisitions and dissolutions, and specialise in
underperforming assets and financially distressed businesses. Gandalf has
restructured over fifty companies, including four listed companies.
For more information, please contact:
Karl Gribnitz
GANDALF TRUST
Tel: (011) 748-2800
Fax: (011) 748-2888
Julian Treger
AVSAM
Temporary tel: (011) 292-6000
Ms Suza Adam
Managing Director
Southgro Investor Relations (Pty) Ltd
Tel: 2711-880-0364
Fax: 2711-788-3697
http://www.southgro.co.za
Date: 14/06/2002 12:58:00 PM Produced by the SENS Department
