The stoush between First Capital and Explorer Group's major shareholder John Aldersley may soon be in the hands of the courts with both parties remaining steadfast over a sale agreement of Explorer group shares.
In July last year, Direct Portfolio Services executive chairman John Aldersley entered into an agreement with First Capital for the sale of his shares in Explorer Group, the holding company of Direct Portfolio Services.
After First Capital failed to settle last year and again in March this year, Aldersley lodged a termination letter on 21 June 2007, Aldersley told InvestorDaily. The letter was rejected by First Capital.
"I've had no contact with [First Capital] since I gave them the notice to complete other than a letter saying that I don't have the right to complete," Aldersley said.
"The agreement was conditional on them issuing a prospectus to raise special purpose capital and they haven't ever done that. And because they haven't ever done that they're saying I can't terminate.
"The agreement allowed for me to terminate if they issued one and failed to raise the money but it technically speaking doesn't say I can terminate if they never raise the money."
Aldersley said he now regards First Capital as an unsuitable purchaser, and will not sell his shares to the group unless a judge tells him otherwise.
"As far as I'm concerned unless a court orders me to sell my shares to them I've got no intention to sell my shares to them," he said.
"I haven't got any intention to sell them to anyone else either."
Instead, Aldersley has resumed his executive chairman duties.
"The board has given me the mandate to step back in and run the company again so that's exactly what I started doing two weeks ago," Aldersley.
"We've kicked out the First Capital people who were there learning how to replace the people I've got in there. I might be able to try and get the staff back again.
"Otherwise I'll be recruiting. More than half have left already and the rest would have gone if First Capital would have gained control."
Commenting on the ongoing disagreement, First Capital's general council David Grey said: "Clearly we're in dispute. We've identified that by our ASX [Australian Securities Exchange] announcement.
"We'll be acting in the best interest in First Capital and its shareholders moving forward.
"When we're ready we'll make an ASX announcement."
