Blacksheep Master Fund supports Volaris bid to take over Adapt IT

ADAPT IT has informed its shareholders that Blacksheep Master Fund, which holds a 44.4 percent stake in the company, had given Volaris its irrevocable undertaking to support its bid for the takeover of the South African software company.

Volaris, a subsidiary of Toronto-listed Constellation Software, tabled an offer to acquire 100 percent of the issued share capital of Adapt IT on April 7 for 650 cents a share, which represented a premium of 56.9 percent to the 30-day volume-weighted average-traded price of Adapt IT shares on the JSE of 414c as at January 26, which was the last trading date before the date on which the general offer by Huge Group to Adapt IT shareholders was announced.

Constellation Software has more than 125 000 customers, operates in more than 100 countries and generates revenues exceeding $3.8 billion (R54.15bn).

Huge Group tabled an offer of 55c in January to acquire the entire issued share capital of Adapt IT, and valued the company at R795 million.

“Adapt IT hereby notifies shareholders that Volaris has received an irrevocable undertaking from Blacksheep Master Fund, an Adapt IT shareholder, confirming its undertaking to vote in favour of the scheme resolution, the scheme delisting resolution and the general offer delisting resolution, all as defined in the firm intention announcement,” the group said.

Volaris indicated early this month that the successful conclusion of the offer would result in a well-governed and diversified South African technology company, backed by a well-capitalised leading global technology firm keen to support further growth.

The group said Adapt IT would represent its interests on the African continent, a region in which Volaris has a limited presence but which it intends to grow in the coming years.

Adapt IT expects to provide further details of the transaction by the end of next month.

Adapt IT’s shares have rallied on the JSE in the past few days since Volaris announced its intention.

The stock closed 1.06 percent higher at R6.70 a share on Friday.