Adapt IT shares show big gain on Huge Group’s acquisition offer

Adapt IT’s share price rose more than 12 percent on the JSE after the Huge Group made an unsolicited general offer to acquire all of the issued share capital of the specialised software and digitally-led business solutions company.

Huge Group is offering to purchase all of the issued Adapt IT shares at 552 cents a share, valuing the company at R795 million, and the group said the offer represented a 33 percent premium on its 30-day weighted average traded price on January 26.

Adapt IT said the offer consideration from Huge is a swop ratio of 0.9 of a Huge share for every one Adapt IT share tendered.

“The swop ratio is based on a reference price of 613c per Huge share and an implied price of 552c per Adapt IT share,” Adapt IT said.

Adapt IT’s share price leapt by more than 12 percent yesterday morning to a day high of R5.21, up from Wednesday’s closing price of R4.01.

However, the share price was still down by 72 percent compared to its high of R16.50 achieved in October 2016.

Adapt IT’s share price has been on the mend in the past six months, recovering from R1.17 recorded at the end of September last year.

Adapt IT said the deal was conditional on Huge Group receiving shareholder approval from its shareholders in terms of section 9.20 of the JSE Listings Requirements and the Takeover Regulations Panel having issued a compliance certificate in relation to the offer.

“As the offer is conditional on the approval by Huge shareholders, Adapt IT will keep shareholders informed and up to date on this process,” the group said.

Peter Takaendesa, the head of equities at Mergence Investment Managers, said Huge’s offer to Adapt IT shareholders was opportunistic and probably not enough to get all Adapt IT shareholders to accept the deal.

“Ultimately, it will all come down to how Adapt IT shareholders view the potential upside in Huge shares offered to them in exchange compared to simply holding on to their Adapt IT shares that are down about 70 percent from their peak a few years ago,” Takaendesa said.

BUSINESS REPORT

Sourced from: Adapt IT News. View the original article here.

About Telecoms-Channel

Telecoms-Channel.co.za is your one-stop source for the latest news and insights from the telecoms industry in South Africa, where you get comprehensive coverage of the industry and keep up with the ever-evolving market landscape.

Whether you need to understand market trends, identify new opportunities, or stay informed of the latest developments, we have you covered.

In addition to bringing the best news together, we have access to an extensive supplier network that makes it easy for any telecoms company looking to tap into new markets or enter the telecoms industry. Take advantage of our expertise and contact us today to find your next partner!

Other posts you might be interested in

Ericsson LG
Industry News

Ericsson-LG’s Key Trends Shaping the Future of Enterprise Communication

Ericsson-LG is at the forefront of transforming the business communications landscape. By harnessing the power of artificial intelligence, cloud technology, and robust cybersecurity, the company is empowering businesses to enhance productivity, streamline operations, and improve customer experiences.

Cloud PBX Solutions

Request Once, Get Multiple Quotes - Save Thousands!