Adapt IT hires Nodus to evaluate Huge bid


Adapt IT hires Nodus to evaluate Huge bid

Published Date: 2021-02-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

Adapt IT hires Nodus to evaluate Huge bid

The software and digital services group has cautioned shareholders to sit tight until an independent opinion has been published.

Adapt IT has appointed Nodus Capital to give an independent opinion on Huge Group's R800 million takeover bid. And it's cautioned its shareholders to not take any action on the offer until they've received the opinion of Nodus - as well as the independent board of directors it has constituted to evaluate the bid.

Huge has offered 0.9 of its shares for each share in Adapt IT. The offer, announced late last month, valued the bid at R5.52 per share, a 33% premium to the 30-day weighted average price of Adapt IT's shares ahead of the announcement. Huge's shareholders have already given their approval.

Last week, Huge said Adapt IT shareholders would reduce their risks if they agreed to its all-share takeover bid. It would also create a bigger group that would be taken more seriously by lenders. Huge said a combination of the two companies would be better positioned to withstand any reversal in current low interest rates. Adapt IT's shareholders would have the opportunity to lower their financial risk exposure due to Huge's lower debt levels relative to its market value.

Adapt IT said Nodus would take the value of its shares into account when expressing its opinion on the offer.

Adapt IT said its response circular to shareholders would be sent within 20 days after receiving Huge's offer circular to Adapt IT shareholders, which is due to be published by 3 March.

Adapt IT's shares fell 0.5% to R4.36 yesterday while Huge rose 4% to R5.97.

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