By NZPA
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Tuesday 6th August 2002 |
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eVentures is poised for liquidation after finding the climate for e-commerce too tough in the wake of the 2000 "tech wreck".
The Grant Samuel report said it had "no reason not to believe that the Bell offer is motivated by genuine altruistic reasons on the part of Craig Heatley".
Mr Heatley, a 44 percent shareholder, has said that although he is not legally obliged to, he wishes to pay back small shareholders who handed over 60c a share when the company was floated in May 2000.
eVentures, which managed to hold onto most of the capital it raised, last traded on Friday at 32c a share.
The report noted Mr Heatley's "generous motives" had been reinforced by a pledge to donate about $7 million, the amount he stands to make from the liquidation of eVentures, into a trust aimed at helping child based charities in New Zealand and overseas.
He acquired his shares at 15c each, but shareholders at liquidation are expected to receive between 33c and 35c a share.
eVentures struggled from the outset with a first-year loss of $3.9 million on revenue of $2.6 million. Last year's loss improved to $926,000 on revenue of $4.4 million.
The company has remained cash-rich, with $31.3 million of cash at December last year, but did not make the number of investments originally planned.
Mr Heatley said recently there was no guarantee eVentures' liquidation was the best option, but if it were to continue it might incur expensive overheads which the company was not prepared to swallow.
Normally the Takeover Code would required Mr Heatley, as a holder of 20 percent or more of the company's shares, to make a full takeover offer, but he is seeking to have his plan approved as a compliance option.
The report said that there was no economic justification on the part of Mr Heatley's company Bell to pay 60c to any shareholders, and it was unlikely as a non-trading cashed up shell to increase in value.
It said shareholders other than the offerees will not be affected financially, as Mr Heatley was using his own cash to buy the shares.
Shareholders will get an opportunity to vote on the company's liquidation on August 21 in Auckland.
eVentures' independent directors, including Warehouse founder Stephen Tindall, and representatives of Todd Communications Ltd, have recommended the Heatley offer.
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