Adapt IT founder and CEO Sbu Shabalala resigns
Founder and Adapt IT CEO Sbu Shabalala has resigned from the JSE-listed software services company.
The company announced today that Shabalala has taken the decision to terminate his employment with Adapt IT and resign as director of Adapt IT and its subsidiaries with effect from 6 August 2021.
ITWeb reported last week that all eyes were on the company, as markets and shareholders waited for an update on whether Shabalala would resume his duties.
Today, in a notice to shareholders, Adapt IT announced: “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. The Adapt IT founder was accused of ordering 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.
“This has taken a toll on my well-being. My instinct is to soldier on. However, those closest to me, who care for me, have advised that I take time out for self and family care. I listened. Hence my decision to take leave,” he said.
The sudden departure of Shabalala comes as the company is nearing the end of tense takeover negotiations that have pitted Canadian group Volaris against Huge Group.
The two companies, Huge Group and Volaris, have been aggressively pushing Adapt IT shareholders to accept their respective offers.
The race between Huge and Volaris to take control of Adapt IT had been unfolding in the past few months, as both companies were determined to acquire a controlling stake of the JSE-listed software services company.
As it stands, Volaris has an upper hand after Adapt IT shareholders voted overwhelmingly in favour of the Canadian software group buyout scheme; 69.82 % of Adapt IT shareholders, holding 95 834 979 shares, voted.
For Huge, the takeover bid now seems like a fading dream, after the company announced last week it only managed to get 1.9% of Adapt IT shareholders’ vote.