Huge Group sets sights on Adapt IT
The deal valued at R795 million, saw the company’s share price soar.
Specialised software and digitally-led business solutions company Adapt IT has caught the attention of technology investment consortium, Huge Group. Earlier this week, Huge Group offered to acquire all of Adapt IT Holdings’ shares in a share swap, valuing the company at R795 million. Shortly after making the offer, Adapt IT’s share price rose more than 12 percent on the JSE.
Huge Group has subsidiaries in the telecommunication, media, technology, and software industries. The company's offer represents a 33 percent premium on the 30-day average traded price of Adapt IT shares.
Despite the purchase offer, Adapt IT shares are still down by 72 percent compared to their peak in October 2016. The company has been making slow progress over the past six months.
Adapt IT has stated that the deal was conditional on Huge Group receiving shareholder approval according to section 9.20 of the JSE Listings Requirements, and the Takeover Regulations Panel issuing a compliance certificate concerning the offer.