Friday 25th May 2001 |
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After harsh criticism, especially from small shareholders, a new restructuring deal has been mooted for listed internet investment company eVentures.
The new plan would see the company buy back and then cancel 64% of its issued capital once a proposed takeover is completed.
The transaction is intended to give minority shareholders a fairer deal after Classic Communications, an investment vehicle for New Zealand entrepreneur Craig Heatley, initially proposed a takeover of eVentures.
Mr Heatley, the founder of New Zealand's main pay television operator and 16% eVentures shareholder, is offering to pay 14-16.8c a share for the 64% of eVentures controlled by Japan's Softbank and Rupert Murdoch's News Corp.
Mr Heatley's bid is a substantial discount to eVentures' recent share price of 27c.
It was initially thought Mr Heatley, who along with other high-profile investors Dr Roderick Deane and the Warehouse's Stephen Tindall was issued cheap eVentures shares at the company's launch, was going to get a cushy discount deal.
But under the cancellation plan the number of shares on issue would be reduced to 90 million and increase eVentures' net asset backing a share by about 45%.
Roderick Deane, chairman of eVentures, said independent directors endorsed the proposal, because it gives "a more satisfactory outcome" for eVentures' 1150 minority shareholders.
eVentures was launched on the local equities market at the height of last year's new-economy fervour.
But, like most of its e-counterparts, things have been disappointing.
The company's Australian office has been closed, local business E-Loan is all but closed and Message Media is understood to be doing good, albeit quiet, business.
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