Dublin-based fund manager Blacksheep Master has acquired an additional six million Adapt IT shares, increasing its stake to 15.9% of the total number of securities in issue.
The JSE-listed software services group notified shareholders today of Blacksheep Master’s acquisition of the additional shares in terms of the bourse’s requirements.
The Ireland-headquartered hedge fund has splashed millions on Adapt IT shares in recent months and today picked up an additional 6 926 120 shares.
The company’s stake has now increased to 15.9% of the total number of securities in issue (and 15.96% of the total number of securities in issue excluding treasury shares).
“Blacksheep Master Fund’s acquisition of 6 926 120 shares demonstrates their confidence in the future of Adapt IT,” Tiffany Dunsdon, Adapt IT interim CEO, tells ITWeb.
Adapt IT’s shares have rallied in the past few months since Canadian software group Volaris and Huge Group announced plans to take control of the company.
It has been the subject of tense takeover negotiations as the two companies tried to outbid each other in the race to control the software services group.
Huge Group and Volaris have been aggressively pushing Adapt IT shareholders to accept their respective offers.
As it stands, Volaris has the upper hand after Adapt IT shareholders voted overwhelmingly in favour of the Canadian software group’s buyout scheme. Some 69.82 % of Adapt IT shareholders, holding 95 834 979 shares, voted.
For Huge, the takeover bid now seems like a fading dream, after it only managed to get 1.9% of Adapt IT shareholders’ vote.
The latest developments are taking place on the back of the departure of founder and Adapt IT CEO Sbu Shabalala, who resigned this month.
The company announced to shareholders on 10 August that Shabalala had taken the decision to terminate his employment and resign as director of Adapt IT and its subsidiaries, with effect from 6 August.
It said: “The board has duly accepted his resignation and wishes him well in his future endeavours. Adapt IT will make an announcement in due course on a permanent replacement for Mr Shabalala as CEO. In the meantime, Ms Tiffany Dunsdon will continue in her role as interim CEO.”
Shabalala was granted a leave of absence in May, after he was accused of masterminding an attack on an Ethekwini municipality manager, with claims he ordered unidentified men to assault his estranged wife, Neo Shabalala’s partner, Sipho Nzuza.
At the time, Shabalala defended himself, saying he had been caught in a crossfire.
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