It had earlier been thought that rival services group Bidvest and its charismatic executive chairman Brian Joffe might mount a counterbid for Servest, of which Bidvest already owns 28%, but Joffe is today expected to allow the buyout to proceed.

However, Joffe told analysts recently that he believed the 89c offer price represented a reasonable valuation of Servest and he has the reputation for walking away from deals rather than paying over the odds for assets.

The proceeds from the sale of Bidvest's Servest stake are likely to help boost Joffe's war chest, as he continues on the overseas acquisition trail, following the acquisition of the assets of a French document services company Danel last week.

The company had been put into receivership in June because it had been unable to pay some of its bills.

Bidvest's recent announcement of its financial results for the year to June had included a note that 'the performance of Servest to date has been disappointing.

'As a 28% shareholder and a potential offeror, Bidvest has not yet decided on its course of action. However, the book value of our investment is reflected at 89c per Servest share,' said Joffe.

Some analysts have interpreted that note as an indication that Joffe will be accepting the 89c offer.

'If he were to have mounted a rival offer, he would have had to have done so by now,' said an analyst at the weekend.

'The only other thing he might do is to use some procedural device to make trouble for Servest, but that is also looking less and less likely.'

Servest CE Kenton Fine expressed optimism yesterday that 'things are going to go well' at today's shareholders' meeting. 'I have a sense that we will have no opposition to the transaction,' he said.

'Hopefully, the end result will be favourable for everyone concerned.' He said that if shareholders do back the buyout, then Servest would be delisted later this month.

Bidvest had expressed concern about the reliability of the 89c a share offer price as it appeared in Servest's circular to shareholders, as there had been some ambiguity about this being the final amount which will be paid out.

'We have done everything in our power to ensure there is no problem with the 89c,' said Fine. 'We have made sure it is going to be received.'

Servest management had justified the buyout by suggesting that the market had lost its appetite for low capitalisation stocks.

There was also a clear concern that Bidvest would not remain a minority shareholder in the longer run, but would at some stage launch a predatory bid for Servest.

'We are confident of the future prospects of Servest, particularly as we will no longer have to deal with the uncertainty regarding the intentions and actions of a substantial competitive shareholder (Bidvest), and can now focus on specific issues within the businesses,' said Fine when the management buyout was announced.

Servest closed unchanged and untraded on Friday at 85c, while Bidvest fell 1,75% to R42,74.

Business Day