Huge Group has removed videos in which it attacks the motives of Adapt IT’s management related to an offer from Volaris to acquire the company.
In the videos, Huge Group questioned the motives of Adapt IT CEO Sbu Shabalala and other Adapt IT executives.
Shabalala previously said they were “very interested” in the Volaris transaction as it gave shareholders a significant premium on the prevailing share price.
Huge Group, which has also made an offer to Adapt IT shareholders, questioned Shabalala and other Adapt IT executives’ motives in the videos.
Huge Group CEO James Herbst told MyBroadband Huge and Adapt IT are “better off together” and will create more value for shareholders than the Volaris deal.
Herbst added that Shabalala’s comment that Adapt IT shareholders can take the cash from the Volaris deal and buy Huge Group shares appears to be self-serving.
After the video was published and distributed on platforms like LinkedIn and its own website, the Takeover Regulation Panel (TRP) informed Huge Group that the video constitutes “announcements”.
This means Huge Group should have sought approval from the TRP prior to its publication.
Huge has subsequently removed the video from its website and retracted the statements they contain.
“The board accepts responsibility for the information contained in this announcement insofar as it relates to Huge,” the company said in a statement.
“To the best of its knowledge and belief, the information contained in this announcement is true and the announcement does not omit anything likely to affect the importance of the information.”