Feb 24 2021

Interim trading update – financial results to be presented via Web cast in March

by Adapt IT
JSE-listed technology company Adapt IT Holdings (Adapt IT) will be releasing its financial results for the six months ended 31 December 2020 on the JSE’s Stock Exchange News Service (SENS) on 9 March 2021 and via Web cast, at 10am (SAST) on Wednesday, 10 March 2021. In terms of the Listings Requirements of the JSE, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on will differ by more than 20% from those of the previous corresponding period. Accordingly, a review by management of the financial results for the six months ended 31 December 2020, as disclosed on SENS today, has indicated that earnings per share (EPS), headline earnings per share (HEPS) and normalised HEPS (NHEPS) are all expected to increase. Sbu Shabalala, CEO of Adapt IT Holdings, commented: “I am pleased with our performance for the six months ended 31 December 2020. Our cash generation from operations was strong,...Read More
Feb 03 2021

Adapt IT names board committee to assess Huge Group bid

by Duncan McLeod
Adapt IT has formed an independent board committee to assess Huge Group’s unsolicited bid to buy the software company in an all-share deal valuing it at R795-million. Huge Group made the unexpected “general offer” to Adapt IT shareholders last week. Adapt IT has now, as required under South African takeover rules, constituted the independent board of directors, which is made up of Craig Chambers, Oliver Fortuin, Zizipho Nyanga and Catherine Koffman — the full complement of the company’s non-executive directorship. This board will advise shareholders on the Huge Group offer as required under the takeover regulations. It will also appoint an independent expert to issue a report on the offer and to express an opinion on whether the terms and conditions are fair and reasonable to Adapt IT shareholders. News of the creation of the independent board comes two days after Huge Group said it had secured the backing of more than three-quarters of its shareholders for its pursuit of Adapt IT....Read More
Jan 29 2021

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

by Sandile Mchunu
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...Read More
Jan 29 2021

Huge Group makes R800m bid for Adapt IT

by Karl Gernetzky and Mudiwa Gavaza
The offer is still conditional pending approval from Huge shareholders Specialist IT group Adapt IT’s share soared more than 14% after fellow technology company Huge Group made an R800m takeover bid for it. In morning trade on Thursday, Adapt IT’s share jumped 17.21% to R4.70 after earlier rising as much as 29.9%, which put it at a 16-month high. During the day, the stock pared its gains, ending the day 13.47% firmer at R4.55......Read More
Jan 29 2021

Surprise R800m bid for SA software group is opportunistic, analyst says

by Helena Wasserman
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
Jan 28 2021

General offer by Huge Group Limited

by Adapt IT
ADAPT IT HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration number: 1998/017276/06) Share code: ADI ISIN: ZAE000113163 (“Adapt IT” or “the Company”)...Read More