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South Africas Adcorp has put in a bid for R662m (57.9m) for Paracon.

South Africa’s Adcorp  has put in a bid for R662m (&pound57.9m) for Paracon. It will offer 13.812 shares for every one Paracon share or R1.97 a share.

Paracon an information-technology company gained 5c on the news or 2.6% to R1.95.

Adcorp's share price on the other hand acted negatively falling 40c or 1.5% to R27.

The deal is set to create a R6.5bn people solutions provider in South Africa, with Paracon filling Adcorp’s current gap in high level specialised ICT skills and solutions, a press statement said.

Paracon CEO Mark Jurgens argues that those who take shares in Adcorp will be exposed to a larger, more diverse leader in the resourcing sector with a consistent track record of annual dividends.

Adcorp has stated that it will “not tamper with Paracon’s well-run business”, he said.

Paracon offers resourcing and business solutions though operations in its niche markets, and has India-based ICT solutions associate Nihilent.

The acquisition is due to be concluded before the end of the year subject to a number of conditions including shareholder and regulatory approvals.


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