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iTalk will double Huge earnings

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 14 Dec 2007

Huge Group`s proposed acquisition of iTalk Cellular could see earnings per share (EPS) and headline EPS (HEPS) rise by 137% and 138%, respectively.

The deal still requires approval from Huge Group`s shareholders, MTN and competition authorities.

In a notice on the Stock Exchange News Service yesterday, Huge Group provided the pro forma financial effects of the acquisition for illustrative purposes.

Calculated on the unaudited financial results of both companies, Huge estimated the deal would see EPS and HEPS increase from 3.5c and 3.49c, respectively, to 8.3c. Net asset value per share would drop 15%, to R2.25, and tangible net asset value per share would increase 5%, to R1.71.

As the deal is defined as a Category 1 transaction by the JSE, Huge is required to seek shareholder approval through the posting of a circular to its investors. However, as the JSE closed submissions for formal documentation earlier this week, Huge says it will only be able to post the circular in the new year.

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Huge Group aims to get bigger

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