PRESS RELEASES
Announcement regarding VenFin's interest in Intervid Limited
4VenFin 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 Intervids 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 Intervids 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 Intervids 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 Date: 24/02/2004 02:03:57 PM Produced by the JSE SENS Department