Telecoms specialist Huge Group has concluded a series of transactions to acquire Tethys Mobile, the company formerly known as Virgin Mobile SA.
The purchase will see Tethys Mobile become a wholly-owned subsidiary company controlled by Huge Group, the JSE-listed company said in a SENS statement.
In addition, its name will change from Tethys Mobile to Huge Digital Enablement once the transactions are implemented and the company successfully exits the business rescue process.
Huge says the rationale for acquiring Tethys is the indirect acquisition of its software and technology platform, and the related intellectual property.
“The intention is to leverage the world-class technology built into this software and technology platform and the operational capabilities that exist in support of it.
“Over the past 16 years, Tethys has created a very sophisticated technical and operational capability linked to this software and technology that will allow the company to provide a platform-as-a-service to organisations that aspire to provide mobile virtual network operator or MVNO services.
“The software and technology platform includes a multi-tenant-capable CRM, billing and online charging system that provides enhanced billing, customer and subscriber management, product, tariff and real-time rating capabilities,” it notes.
After 15 years in SA, Virgin Mobile (Tethys Mobile) last year announced it was closing shop in the country, after it was placed into voluntary business rescue in 2020.
Launched in 2006 as a joint venture between Sir Richard Branson's Virgin Group and Cell C, Virgin Mobile South Africa established itself as a dynamic and growing brand with stores nationwide.
The group says: “The transactions, when implemented, will see the post-commencement creditors who supported Tethys during the business rescue process settled in full; this includes Tethys subscribers who were due refunds after its access to network services was terminated in September 2021. As part of the transactions, Huge Group will acquire Cell C’s claims against Tethys as well as the claims of various pre-commencement creditors.”
The transactions are subject to various conditions, the most notable being the finalisation of Huge Group’s due diligence, it adds.
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