Adapt IT is expected to make a pronouncement soon on the fate of CEO Sbu Shabalala, who, in May, was granted a leave of absence, after he was accused of masterminding an attack on an Ethekwini municipality manager.
Shabalala’s leave is supposed to end next week Tuesday, and all eyes are on the company, as markets and shareholders await an update on when he will resume duties.
The JSE-listed software services company confirmed to ITWeb today it will soon make a pronouncement on the matter, without providing further details.
Tiffany Dunsdon, chief commercial officer, is interim CEO while Shabalala is on leave.
The Adapt IT founder temporarily stepped down after he 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 crossfire and the accusations were without merit.
“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 pending decision by the Adapt IT board will come as the company nears the end of tense takeover negotiations that have pitted Canadian group Volaris against Huge Group.
For Huge, the takeover bid now seems like a fading dream, after it announced yesterday it only managed to get 1.9% of the Adapt IT shareholder vote.
“The offer closed at 12:00 (SA time) on Friday, 30 July 2021, and Huge is pleased to announce that Adapt IT shareholders holding 2 612 719 Adapt IT shares, representing 1.9% of Adapt IT’s total ordinary share capital, excluding treasury shares, accepted the offer,” Huge said in notice to shareholders.
“The board wishes to welcome these Adapt IT shareholders as new shareholders of Huge and looks forward to working with these shareholders to achieve something Huge.”
Contrarily, Adapt IT shareholders voted overwhelmingly in favour of Canadian software group Volaris’s buyout scheme.
Some 69.82 % of Adapt IT shareholders, holding 95 834 979 shares, voted.
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 weeks, as both companies were determined to acquire a controlling stake of the JSE-listed software services company.
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