By Sandile Mchunu Feb 2, 2021
DURBAN - THE HUGE GROUP share price declined by more than 5 percent on the JSE yesterday after the technology group received backing from the majority of its shareholders for the proposed acquisition of Adapt IT.
The group announced last week that it had tabled an offer to acquire all of Adapt IT issued share capital for 552 cents a share, which values the company at R795 million, and the offer represented a 33 percent premium on its 30-day weighted average traded price on January 26.
The offer to acquire Adapt IT is conditional on Huge shareholder approval in terms of paragraph 9.20 of the JSE Listings Requirements and the issue of a compliance certificate by the Takeover Regulation Panel in relation to the offer.
Huge is offering a swop ratio of 0.9 of a Huge share for every one Adapt IT share tendered. However, Huge said yesterday it has been given the nod by its shareholders.
“The Huge board has procured irrevocable undertakings from Huge shareholders holding 79.57 percent of the issued share capital, excluding treasury shares, of Huge to vote in favour of the resolutions necessary to implement the proposed transaction and the offer,” the group said.
Huge share price traded in the red yesterday by declining to R5.65 a share, at one stage. The shares closed the day at R5.99.