Heatley seeks eVentures at a discount

By DITA DE BONI

Craig Heatley, former chairman of eVentures and a significant shareholder in the company, is behind a group offering to buy the founding partnership out of eVentures at a substantial discount.

Mr Heatley's Classics Communications has filed notice of its intention to buy the 64 per cent slice of eVentures owned by US-based Softbank and News Corporation subsidiary epartners.

While shares in the company closed yesterday up 1c at 29c, Classics Communications is offering between 14c and 16.8c in cash for the lion's share of the company.

EVentures has net assets of 22c per share. Last year, eVentures issued shares to the public at 60c each.

After the deal is completed, interests associated with Mr Heatley will own 80 per cent of the company.

Mr Heatley's successor in the chairman's seat, Roderick Deane, said last night that an independent committee had been formed to assess the likely implications of the offer.

The situation of minority shareholders was of particular concern, he said.

Yesterday eVentures advised shareholders not to sell their holdings in the company but would say nothing more to the media.

Under chief executive Cindy Mitchener, eVentures has struggled to make a success of its business model. Formed to invest in New Zealand versions of overseas technology businesses, the company has invested in only two companies - E-Loan and MessageMedia. EVentures ended its first year with a loss of $4.5 million and a cash pile of $53 million seeking investment opportunities.

Mr Heatley is out of the country on an extended break with his family. He left New Zealand in February, soon after netting around $64 million by selling his stake in Independent Newspapers.