Announcement Regarding
Release Date: 24/02/2004 14:03:55 Code(s): VNF
Announcement regarding VenFin"s interest in Intervid Limited
VENFIN LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1948/031037/06)
Share Code: VNF
ISIN: ZAE000026498
("VenFin")
Announcement regarding VenFin"s interest in Intervid Limited
VenFin Limited ("VenFin") refers shareholders to the recent announcements
concerning Intervid Limited ("Intervid") and specifically to the announcement
published by Intervid following the conclusion of the Intervid Special General
Meeting held on 23 February 2004 and the commentary in Intervid"s interim
results for the six months ended 31 December 2003 that were released on SENS on
24 February 2004.
VenFin has recently made detailed proposals to the Intervid Board ("the Board")
and the Howard family which VenFin believed were in the best interest of all
Intervid shareholders and which, inter alia, included:
a recapitalisation proposal in the form of underwriting a rights issue or
providing convertible loan funding, which would have improved Intervid"s working
capital position and allowed Intervid to continue with its turnaround plan; and
that RFS Holdings, an international associate of VenFin, is willing to consider
limiting its conversion rights provided in the convertible bond to 65% of
Intervid"s issued share capital.
Whilst the above proposals were supported by the majority of the Board, the
Howard family did not agree to them. To date, the Howard family has yet to
present an alternative recapitalisation plan to the Board and VenFin.
VenFin is concerned that the changes to the Board will have a disruptive effect
on the turnaround plan that is currently being implemented.
VenFin will continue to evaluate all alternatives available to it in respect of
its investment in Intervid.
Stellenbosch
24 February 2004
Financial Adviser
Cazenove
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
Attorneys
Hofmeyr Herbstein & Gihwala Inc.
For further information contact:
Nick Williams (College Hill) on +27 11 447 3030
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