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.
Volaris had previously offered shareholders R6.50/share, also all in cash.
Nodus Capital, appointed by an Adapt IT independent board to consider the fairness and reasonableness of the offer, has previously said a valuation of between R7 and R9.09 would be fair for shareholders. It has now said the new offer price is fair and the independent board has concurred with that finding.
Already, Huge Group has increased its all-share offer – to as much as R9.09/share, depending on how one calculates the figure based on the share prices of Huge and Adapt IT. Given that Volaris has increased its offer by only 50c/share, it seems likely that the Canadian firm has not delivered a knockout blow to its rival’s ambitions.
The independent board has also determined that the revised Huge offer is fair and reasonable “because it is within the fair-value range”. – © 2021 NewsCentral Media
- This is a developing story