News

On Wednesday evening, the tech sector was jolted by a surprise R800 million takeover bid for the local software group Adapt IT. South African telecom company Huge Group is offering to exchange each Adapt IT share for 0.9 Huge share, which works out to a value of 552c per share – 33% more than the share’s average price over the past month. In response, Adapt IT issued a neutral statement on Thursday, saying Huge’s offer was "unsolicited" – indicating that the board won’t necessarily support the takeover. Adapt IT’s share price jumped by 13% in reaction to the bid, while Huge declined by almost a percent on Thursday – indicating that the market believes the bid may go ahead, says Chantal Marx, head of investment research and content at FNB Wealth and Investments. But she believes that the bid is opportunistic, given that Adapt’s share price has lost more than 70% of its value over the past four years, leaving the company undervalued, on a price earnings ratio of below 8 times. Part of...Read More