Least-cost routing services supplier TelePassport will list on the JSE's Alternative Exchange next week.
In an about-turn, the company will go directly to the market in newly-formed company, Huge Group, rather than the previously-stated intent to reverse list into Cenmag.
TelePassport CEO Anton Potgieter explains: "The reverse-listing process was proving to be both time-consuming and problematic. Fortunately, we had initiated the front-door process in parallel with the reverse-listing process as the strategy given the current telecoms boom was always speed to market, rather than ease of introduction."
Ex-DataPro group financial director James Herbst - the man who masterminded the original R126 million Cenmag acquisition - remains with TelePassport and Huge Group as group FD.
Cenmag suspended
In June, Herbst said he was behind TelePassport's reverse-listing into Cenmag.
Under his guidance, new investor Pacific Breeze Trading 417 entered negotiations to purchase the entire shareholding of Cenmag majority shareholder Blaf Investments. In return, Blaf would receive the old businesses residing in the investment holding company.
However, Cenmag could only complete its acquisition of TelePassport once the remaining shareholders approved the deal with Blaf.
Later the same month, the JSE suspended Cenmag's listing on the development capital market, pending clarification on the shareholder and TelePassport deals.
Cenmag has yet to respond to the JSE or shareholders. Similarly Herbst's status as Cenmag group FD has yet to be clarified. Herbst acquired this position as part of the shareholder negotiations.
Meanwhile, 50 million ordinary shares in Huge Group have been pre-placed at R2.50 a share. The proceeds of this private placing will be used to defray the expenses of the private placing and listing.
Potgieter says the decision to list will place the company in a position to take advantage of current industry consolidation and become an acquisitive operation. Excess funds from the private placement will be used to finance the expansion of Huge Group.
The company is expected to list on 8 August.
Related story:
TelePassport in R126m reverse listing
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