By Edward West 
Aug 11, 2021
Share this article:
ADAPT IT, the eThekwini-based software and computer services company that is the subject of a take-over, first from Huge Group and now the Canada-based Volaris Group, yesterday announced the resignation of its chief executive and founder, Sbu Shabalala.
Earlier this year, Shabalala was granted three months leave of absence to attend to personal matters, following serious assault allegations levelled against him, which he described at the time as “without merit”.
“Shabalala has since taken the decision to terminate his employment with Adapt IT and resign as director of Adapt IT and its subsidiaries with effect from August 6, 2021. The board has duly accepted his resignation and wishes him well in his future endeavours,” the company said.
Shabalala had been at the helm of Adapt IT since he founded the company 15 years ago.
The board said it would announce “in due course” a permanent replacement for Shabalala.
In the meantime, Tiffany Dunsdon, the commercial director, would continue her role as interim chief executive. Dunsdon has been acting in this position since May.
According to previous reports, Shabalala had allegedly hired armed men to threaten suspended eThekwini city manager Sipho Nzuza, the partner of Shabalala’s estranged wife, Neo.
Last year, Nzuza was suspended as city manager following his arrest related to a R430 million tender fraud case in the Durban Solid Waste unit.
Adapt IT’s shares closed 1.18 percent lower at R6.70 on the JSE yesterday. Nevertheless, the share has increased substantially, considering that it was trading at R1.39 a year ago.
The resolution to consider the Volaris offer, pitched at R7 per share, was approved at Adapt IT’s shareholder meeting on June 30 by a majority of shareholders – shareholders representing 69.82 percent of Adapt IT’s shares were present at the meeting.
Adapt IT shareholders have also voted in favour of it being delisted in terms of the Volaris deal.
Less than 2 percent of Adapt IT’s shareholders accepted The Huge Group’s share swop offer, an earlier statement said.
The Volaris offer will mean that Adapt IT, which has a market capitalisation of about R1 billion, will have access to more capital from the Canadian company, whose market capitalisation is C$38.3bn (about R452bn).
The two companies had similar businesses, with Volaris’s portfolio, including agri-food, utilities, education and government services.
The deal would also enable Adapt IT to extend its footprint to Volaris’s 100 operations across the globe.
[email protected]
BUSINESS REPORT