CompCom approves Volaris takeover of Adapt IT
The Competition Commission (CompCom) has conditionally approved the proposed merger between Canadian software group Volaris and JSE-listed Adapt IT.
In a statement yesterday, the CompCom said it found the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets.
Nonetheless, the CompCom said in terms of public interest, the anti-trust body found there would be a dilution in ownership by historically disadvantaged persons (HDPs) at Adapt IT.
“To address this concern, the CompCom, Adapt IT and Volaris agreed to maintain a certain level of HDP ownership post-merger, as well as establish a trust to hold shares in Adapt IT on behalf of workers,” said CompCom.
Takeover discussions have been unfolding in the past few months, as Volaris battled Huge Group to garner shareholder support to control the software services company.
Huge Group and Volaris had been pushing Adapt IT shareholders to accept their respective offers.
Ultimately, Volaris emerged with an 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.
Huge’s takeover bid collapsed after it only managed to get 1.9% of Adapt IT shareholders’ vote.
The regulatory approval yesterday comes a few weeks after Adapt IT appointed Tiffany Dunsdon as CEO, replacing founder Sbu Shabalala, who resigned in August.