Adapt IT CEO takes time off as shares sag

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Adapt IT CEO takes time off as shares sag

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Published Date: 2021-05-11 | Source: Stephen Gunnion | Author: Stephen Gunnion

Adapt IT CEO takes time off as shares sag

The technology group says it has granted Sbu Shabalala a three-month leave of absence to sort out personal matters.

Adapt IT's shares fell as much as 13% yesterday following weekend media reports that CEO Sbu Shabalala was behind an assault case involving his estranged wife. The technology group also pushed out the deadline for conditions to be met ahead of a proposed takeover.

The Sunday Times reported that Shabalala hired armed men to assault Sipho Nzuza, the partner of his estranged wife Neo. The newspaper said Nzuza, an eThekwini city manager, was in hospital in a critical condition and that Neo had been granted an urgent restraining order against Shabalala from entering her Zimbali property north of Durban.

In an announcement late yesterday afternoon, Adapt IT said its board of directors had granted Shabalala a three-month leave of absence in order to attend to personal matters. Chief commercial officer Tiffany Dunsdon had been appointed interim CEO for the three months, while Antonio (Tony) Vicente had also been made an executive director of the company.

Adapt IT is currently courting two suitors interested in acquiring the company. A number of shareholders are backing a R6.50 takeover offer by Canadian firm Volaris, which also appears to have Shabalala's support.

The Volaris offer trumped an unsolicited all-share bid by Huge Group that was valued at R5.52 per share when it was announced in January. It plans to offer 0.9 of its shares for each Adapt IT share. The swap ratio was based on a reference price of R6.13 per Huge share.

Last month, Adapt IT said it had set up an independent board, which planned to recommend the deal. It had already appointed Nodus Capital to give an independent opinion on Huge's takeover bid.

Yesterday, the company said the deadline for certain conditions of the Volaris scheme of arrangement to be fulfilled had been extended by a further week, to 14 May.

Adapt IT's shares retraced some of their losses to close 13% down at R6.15.





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