Investment analyst explains strange Adapt IT share price moves


Who's the Boss?
Staff member
May 24, 2010
Adapt IT's strange share price moves explained

Adapt IT’s share price has declined from R7.46 on 31 May to R6.30 on 18 June despite receiving higher offers from Huge Group and Volaris.

Late last month, Huge Group increased its offer to Adapt IT shareholders from an effective R5.52 per share to R9.09 per share.

This was done by increasing its originally announced swap ratio from 0.9 Huge shares for each Adapt IT share to 1.37 Huge shares for each Adapt IT share.

A week later, Volaris increased its cash offer from R6.50 to R7.00 per Adapt IT share to make their offer “fair and reasonable”.


Expert Member
Dec 4, 2006
Methinks that the Adapt-IT board are in favour of the Volaris offer instead of the Huge offer as they want to keep their jobs and positions on the board. If Huge take over, it's conceivable that Huge will install their own management teams and remove some, if not most or all of the existing board.