Huge Group has been ordered to retract another video about its all-share offer to buy software services group Adapt IT, forcing it into an embarrassing climbdown as it works to secure the support of Adapt IT shareholders.
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Three months after being forced to take down videos from its website in which it implored Adapt IT shareholders to accept its offer to buy the software services group, Huge Group has again gone on the offensive.
Businessman, entrepreneur, deal maker and advisor Duarte da Silva joins Duncan McLeod on the TechCentral podcast for a wide-ranging discussion about South Africa’s IT industry, with a specific focus on Dimension Data.
Huge Group said on Thursday that it will not meet the end-June deadline to publish its annual report and financial statements after its CEO, James Herbst, contracted Covid-19.
Volaris Group, the Canadian firm pursuing JSE-listed software services group Adapt IT, has sweetened its all-cash offer to R7/share in an effort to see off a rival bid from South Africa’s Huge Group.
The share price of Adapt IT jumped by more than 18% in intraday trading on Monday following Huge Group’s unexpected decision on Friday to dramatically up its offer to buy the JSE-listed software services group.
Huge Group, it seems, doesn’t give up without a fight. The telecommunications specialist has dramatically increased its all-share offer for Adapt IT.
Huge Group’s headline earnings per share for the year ended 28 February will fall by as much as 29.9% after accounting for charges related to share options for its three executive directors.
An independent expert appointed by Adapt IT has recommended that shareholders reject the unsolicited all-share offer by Huge Group, saying it undervalues the software services group.
Adapt IT CEO Sbu Shabalala said on Tuesday that the serious allegations levelled against him in a weekend newspaper report are “without merit”.