Shareholder activist flags overvalued goodwill at Huge Group
Theo Botha says the group’s goodwill is likely too high, propping up its share price and in effect its offer for Adapt IT
05 July 2021 - 05:00
A shareholder activist has flagged Huge Group’s goodwill valuation, saying it is likely inflated and leading to an overvalued share price, as the group says it is still in the fight to take over Adapt IT’s business despite investors voting in favour of a rival takeover bid.
Huge Group, whose subsidiaries operate in the telecoms, media, technology and software industries, made a takeover bid for JSE-listed software group Adapt IT, valuing it at R800m in January. After its initial offer of R5.52 a share, it upped this to R9.09 in May...
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