iTalk receives Huge bid

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.

By Kimberly Guest