Intervid Limited - Shareholder Update And Cautionary Announcement
Release Date: 10/05/2004 08:50:10 Code(s): ITV
Intervid Limited - Shareholder Update And Cautionary Announcement
INTERVID LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1999/011483/06)
Share code: ITV
ISIN : ZAE000025615
("Intervid")
SHAREHOLDER UPDATE AND CAUTIONARY ANNOUNCEMENT
As indicated to the market when the interim results were released in February
2004, the Intervid board and management team are focusing on a back to basics
strategy to turn the company around.
As part of this process, the board has taken a strategic decision to focus on
Intervid"s two key geographic markets for systems integration, Africa and the
UK. These two markets represent the largest part of Intervid"s business and the
market opportunities remain attractive.
Intervid Australia and Intervid Middle East are expected to continue to grow
their relatively small businesses and are on track to become profitable. These
areas present attractive future growth opportunities.
Due to continuing losses and cash burn at Intervid North America, Intervid has
concluded heads of agreement with the management of that region to sell this
business to them. The exposure to losses and cash burn will be removed
immediately and Intervid will retain an option to acquire a shareholding in
Intervid North America at a later stage.
Shareholders are advised that (1) Intervid has entered into preliminary
discussions to explore potential business opportunities with Sensormatic SA
(Proprietary) Limited, and (2) Intervid is still involved in negotiation with
RFS Holdings Limited regarding the conversion of the convertible loan. If
either of the above are successfully concluded, it may have a material effect on
the price of the Intervid"s shares.
Accordingly, shareholders are advised to exercise caution when dealing in
Intervid shares until a further announcement is made.
Durban
10 May 2004
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
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