Recently-listed telecoms company Huge Group says it has entered into a binding agreement, which will see it take 59% of iTalk Cellular`s shareholding, at a price of R511 million.
In a notice to shareholders yesterday, Huge said the transaction was fully funded.
However, this failed to pacify investors who sent the share price down 2%, to close at R5.20. Additional sell-offs at today`s opening saw the company lose a further 5.5% by mid-morning.
Huge says iTalk "fits perfectly" with its vision to leverage its brand and increase points of presence throughout SA. Also, the addition of a consumer related telecoms business will augment its current interests in corporate-based managed telecoms services.
The deal still requires the completion of a due diligence on iTalk, approval by MTN SA and normal regulatory sign offs.
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