| Wed 10 Jul 2002, 0:00 | | Datamirror Fails In Hostile Bid For Idion |
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DataMirror fails in hostile bid for IDION
Nicolaas Vlok, chief executive of IDION Technology Holdings, today welcomed the
formal confirmation by DataMirror that its hostile takeover bid for control of
IDION had failed after nearly four months of battle.
"As we predicted from the start, DataMirror was unable to get anywhere near the
50 percent plus one vote they needed for a change of control," Vlok said. "This
is a victory for all of IDION`s shareholders who would not be coerced into
giving up their stake in a company with high inherent value and an exciting
future".
Throughout the hostile bid, management kept its focus on improving the
performance of the Group, assisting the IDION Board in dealing with the bid, and
attending to the business of delivering the leading solutions available in its
market. These efforts have led to a further strengthening since year-end of the
company`s already solid cash base and successful expansion in global markets.
"While we understand why DataMirror would anticipate better returns from
investing its money in IDION rather than in its own company, it is difficult to
see any IDION shareholder value in a co-operation between the companies in the
year ahead. At the beginning of this battle we said that they need us, possibly
desperately, but we do not need them. We have better technology, better
management, a superior client list and better prospects. Nothing has changed."
Vlok said that in the past several months, DataMirror had become nothing more
than a large minority shareholder.
"At the AGM, Datamirror blocked a number of special resolutions purely to show
that it could, not because those resolutions were not in the interests of IDION
shareholders. However, such resolutions were not essential to IDION`s
operations.
"If DataMirror elects to remain a shareholder, it will be treated as a
competitor with a minority shareholding. We will not allow a hostile self-
serving competitor to have any influence over the company at the expense of
other IDION shareholders.
"DataMirror will not be given a seat on IDION`s Board of Directors or access to
strategic information about our company, including our United States-based
subsidiary, Vision Solutions, which was the real target of the takeover bid.
Vision Solutions results will be the arbiter of our success," Vlok said.
In the coming year, DataMirror`s position as a minority shareholder cannot
improve significantly. According to Securities Regulation Panel regulations,
DataMirror cannot acquire more than an additional 4.99% of IDION shares in the
next 12 months, and is prohibited from launching another bid for IDION during
the same period.
IDION will release full details of the company`s financial performance for the
first six months of this year on August 6, 2002.
For further information, please contact:
Corne Arnold, Corporate Communications Director, IDION, tel 011 517 1512 or 083
650 6877
Date: 10/07/2002 03:44:00 PM Produced by the JSE SENS Department
