By Lehlohonolo Lehana.
@AdaptIT.
The board of JSE-listed technology company, Adapt IT Holdings has granted it’s chief executive officer, Sbu Shabalala leave of absence, at his request, for three months with effect from 10 May 2021 ‘to attend to personal matters’.
Tiffany Dunsdon assumes the role of interim chief executive officer for the next three months. Dunsdon has served as executive director and chief commercial officer of Adapt IT.
“In addition, Tony Vicente has been appointed as an Executive Director of Adapt IT. Tony was appointed as chief strategy officer of Adapt IT in September 2018 and will continue in this role with strong operational oversight,” it said.
This comes a day after a Sunday Times report containing serious armed assault allegations against Shabalala by his estranged wife, Neo.
Shabalala is accused of ordering heavily armed men to beat up Neo Shabalala’s partner, who is now in critical condition in hospital.
This, he said, is because of the divorce court proceedings and the inherently private nature of the matter.
Shares in Adapt IT fell in excess of 13% on Monday (10 May 2020).
Shabalala has now decided to speak out about the allegations against him.
“I would like to clarify my leave in context to the allegations made. I have decided to take extended leave. The last five months have been some of the most difficult of my life,” Shabalala said in a statement issued through his spokesman.
“After more than 15 years of the relentless work of building a JSE-listed entity, I need a little respite — time for rest and self-care while I deal with personal battles,” he said. “I’ve had family tragedies, at a time when the business is going through its most important life cycle.
“In the midst of this, I am now being accused of violent and uncharacteristic behaviour, in what is clearly an unrelated attack. I have been caught in the crossfire,” he said without elaborating.
Shabalala said the allegations have “taken a toll” on his well-being. “My instinct is to soldier on. However, those closest to me, who care for me, have advised that I take time out for self- and family care. I listened; hence my decision to take leave. My trust in the competence and excellence of our management team made the decision somewhat easier.”
He reiterated that the allegations against him are “without merit” and said the best way to deal with them is “through the judicial system”.
The timing of these allegations against Shabalala is bad for Adapt IT.
Two companies — JSE-listed Huge Group and Canada’s Volaris Group — are duking it out to acquire Adapt IT, which provides software solutions to the education, manufacturing, energy, financial services, communications and hospitality sectors.
Huge Group is offering R5.52 a share to Adapt IT shareholders, in Huge shares, while the Volaris offer is an all-cash offer at R6.50 per share. Volaris is putting more cash on the table and its offer is preferred by Shabalala.
Both acquisition offers value Adapt IT at nearly R1-billion. The group is valued at just above R1-billion on the JSE. An Adapt IT independent board is expected to soon make a recommendation to the company’s shareholders about which offer to accept or reject.