The Huge Group - a listed telecoms and media company - has reiterated it is in discussions and urged shareholders to exercise caution when trading its stock.
Huge yesterday told the market that it was still trading under cautionary after putting out a notice to that effect in August. On 18 August, the company told the market that it was in negotiations that, if successful, could affect its share price.
Both Business Connexion and UCS recently issued cautionary announcements, indicating they are in talks, although it is unclear if the talks are between the two companies.
The sector has seen several large deals being announced recently, such as the July announcement that Japanese group Nippon Telegraph and Telephone Corporation would buy Dimension Data for R24.2 billion.
Pinnacle is also buying Axiz Technology for R170.9 million and Jasco will pay Spescom R11.8 million and 31.9 million shares in a bid to create a R1 billion company.
Datatec is also in talks to buy all of Comztek for R97 million and is performing due diligence on Comztek.
Expanding the base?
Huge has not provided any further information around its discussions. However, in June it indicated its subsidiary Huge Telecom would “focus on introducing alternative revenue streams that complement its business”.
The results announcement, for the year to February, said Huge Telecom would also “pursue opportunities to increase its client base to enhance capacity utilisation and further improve gross and operating profit margins”.
In addition, media subsidiary Eyeballs was set to explore partnerships to deploy its offerings in the international market, said Huge in June.
Meanwhile, the company said this morning that Michelle Meth was resigning as FD and would take up another senior position within the group.
Related story:
BCX, UCS issue cautionaries
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