Adapt IT delisting from JSE after Volaris takeover gets approval

South African technology services company Adapt IT has informed its shareholders that it will officially be delisted from the JSE from 4 January 2022.

The delisting comes after it agreed to an offer from Canadian company Volaris to acquire up to 100% of the issued ordinary shares of Adapt IT from its shareholders at R7.00 cash per share.

The Competition Commission approved the transaction in October 2021, after 87% of Adapt IT’s shareholder’s vote during a meeting on 30 June 2021.

The deal has now cleared all required regulatory approvals.

“With reference to the Finalisation Announcement, Adapt IT Shareholders are advised that, following the receipt of a compliance certificate from the Takeover Panel in relation to the scheme, the transaction is now unconditional and shares in Adapt IT will be delisted from the Main Board of the securities exchange operated by the JSE with effect from the commencement of trade on Tuesday, 4 January 2022,” Adapt IT stated.

Both Adapt IT and Volaris offer software and digital solutions to the communication, education, energy, financial, and hospitality sectors.

The takeover followed a fierce face-off with Huge Group, which also attempted to woo Adapt IT’s shareholders with an unsolicited share-swap offer.

Initially, Huge Group offered 0.9 Huge shares per Adapt IT shares, which it later upped to 1.37 shares after the Adapt IT board called the initial offer “unfair” and “unreasonable”.

That was based on independent expert Nodus Capital’s detailed valuation of Adapt IT shares and the Huge offer consideration.

Huge Group even went so far as to publish a video in which it criticised the Volaris offer and explained why its proposition was better for Adapt IT shareholders.

Ultimately, however, it only managed to acquire a measly 1.9% of Adapt IT shares, which it subsequently sold.

The Volaris offer, which came in April 2021, boosted Adapt IT shares from around R4 to more than R6. The shares have remained around R7 for most of the second half of 2021.

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