Vox Telecom could be a likely candidate for an investment offer in AltX-listed telecommunications business Huge Group, but that's not so, says Vox.
Huge renewed its cautionary this morning, due to a possible investment offer it had received from an unnamed company. Speculation has again been sparked over who would want a slice of the Huge pie.
The offer has been suggested to be the beginning of an expected consolidation of the telecoms market. IDC analyst Richard Hurst says there is a possibility that Vox Telecom and Huge would make a good fit.
“The synergy is already there,” explains Hurst. Vox would gain an increased subscriber base and could become a serious contender in the corporate and SME voice space, he adds.
Huge previously declined to reveal the name of the investor and was unavailable for comment at the time of publication. This morning's cautionary indicates more than one investor has made an offer.
However, despite the speculation, Vox Telecom executive chairman, Tony van Marken denied the companies have been in discussions.
“I can confirm that Vox Telecom is not in discussions with the Huge Group,” he says.
Vox has been quiet over the last few months, although has not dropped off the screens of market watchers. The company was not only set as a good investor for the Huge Group, but also for parts of ailing business Faritec. Last year, the company expressed its interest in buying MWeb, before the sale was shelved.
The deal
While the discussions are still on the go, the company's cautionary says it has extended the original dates on how it would proceed. Initially, Huge expected to tie up the deal by the end of May; however, the statement says this has been extended. A new date has not been released.
The offer is still passing through the due diligence phase and will need to be approved by shareholders and possibly the regulators. Huge also previously indicated the investment offer will mean Huge would de-list from the JSE.
Huge hoped the high bid offer would drive up the company's share price. Since the offer was announced, it has not reached the R1.60 per share mark.
The company closed last night at R1.20 per share, down 9c over the previous day's trade. At the time of publication, the company's best offer was R1.10 per share.
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