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.
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.
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.
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’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.
Huge Group has taken down two videos from its website in which it implored Adapt IT shareholders to accept its offer to buy the software services group in an all-share deal.
Huge Group, whose bid for Adapt IT is in grave doubt following a rival, all-cash offer from Volaris Group, has accused Adapt IT management of “looking after themselves and not their shareholders”.
Huge Group CEO James Herbst on Tuesday rubbished a claim that the company used its share buyback programme to manipulate its share price higher ahead of its bid to acquire Adapt IT.
Telecommunications company Huge Group has secured the backing of more than three-quarters of its shareholders for its R795-million pursuit of JSE-listed software services group Adapt IT, it said on Monday.