Deane quits eVentures after salvaging deal

By JIM EAGLES business editor

Ructions over the future of eVentures took another turn yesterday with the resignation of chairman Roderick Deane.

There were rumours earlier in the week that Dr Deane had threatened to resign over a disagreement about the restructuring of the company.

In yesterday's announcement Dr Deane said he had only ever taken the job on an interim basis and, now the company was in a strong position, it was an appropriate time for him to depart.

But he did record his disappointment "that eVentures had not been able to pursue more of the types of investment opportunities it had originally envisaged undertaking.

"This was partly because of the major change in the internet market over the course of the past year and partly because of the change in position adopted by the major shareholders in eVentures New Zealand, epartners and Softbank."

The drama at eVentures began on Monday when Classic Communications, a company associated with previous chairman Craig Heatley, announced its intention of buying a 64 per cent stake in eVentures, owned jointly by Softbank and News Corporation subsidiary epartners.

The purchase price was to be between 14c and 16c a share, giving Mr Heatley control of 80 per cent of the company, but at a much lower price than the 60c a share when eVentures was floated last year.

But after lengthy talks between eVentures non-executive directors and Mr Heatley, who is in the United States, agreement was reached that the 160 million shares bought by Mr Heatley would then be on-sold at cost to eVentures and cancelled.

That would have the effect of reducing the number of shares to just 90 million, effectively increasing eVentures' asset-backing by 45 per cent.

It would also, on the face of it, increase Mr Heatley's share of the company from 16 per cent to 44 per cent at no cost to him.

Dr Deane, who apparently worked hard for the new deal, said he was pleased that the company had retained a strong position, holding around $50 million in cash.

That left eVentures well placed to pursue other appropriate investments.

In his statement of resignation he indicated satisfaction that "Mr Heatley has agreed to facilitate a greatly improved outcome for the minority shareholders in the company consequent upon his proposed acquisition of the majority epartners/Softbank shareholding in eVentures, implying a very substantial rise in the net tangible asset backing per share for the remaining shareholders after the proposed buyback transaction."

The statement also included a hint of the stresses at eVentures with a tribute from Dr Deane to the professionalism shown by the company's staff "throughout what has been a difficult time for them".

He also thanked his fellow New Zealand-based directors for their substantial support during the recent discussions.