| Mon 14 Nov 2022, 14:00 | | HUGE GROUP LIMITED - Business combination |
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Business combination
HUGE GROUP LIMITED
(Registration number 2006/023587/06)
Share code: HUG ISIN: ZAE000102042
(“Huge” or “the Company”)
BUSINESS COMBINATION
Shareholders are advised that the board of directors (the Board) of Huge have approved
a business combination (the Business Combination) involving Huge Networks Proprietary
Limited (Huge Networks) and Huge Telecom Proprietary Limited (Huge Telecom), two
directly and indirectly wholly owned investment companies of the Company. The Business
Combination is a part of Huge's organic growth strategy, which will underpin significant
growth over the medium and longer term, whilst immediately unlocking significant
operational benefits and synergies. The combined new entity will leverage the inherent
strengths of both companies for growth.
Dr Marius Oberholzer, Managing Director of Huge Networks, has officially been appointed
to lead the Business Combination. The Business Combination will be implemented with
immediate effect and should be completed no later than 1 March 2023, coinciding with
the new financial year of the Company.
Huge Telecom's significant national footprint, partner network, regional presence, and
national technical resources, combined with Huge Networks' technology leadership and
expertise will greatly enhance the newly enlarged entity's ability to achieve scale, unlock
revenue growth and accelerate the delivery of increased shareholder value. The Business
Combination will immediately yield various operational benefits.
The Business Combination will bring together the commercial, go-to-market and
distribution capabilities of Huge Telecom with the products, services and technical
capabilities of Huge Networks to create a stronger, more capable entity. The newly
enlarged entity will be in a position to offer a significantly expanded product and services
catalogue to its customers and more than 900 registered business partners, including an
Integrated Telephony Solution (a VoIP service that is integrated into GSM) with dedicated
voice transmission and data capabilities that comprise the full spectrum of bearers
including fixed 5G and LTE, carrier-grade fibre services and broadband fibre-to-the-
business services. In addition, the proposition expands to include data hosting services
and platforms, SD-WAN solutions and various security applications.
The newly enlarged entity, with its National Operating Centre (NOC) based in Centurion
and East London, will have an expanded national presence with offices in:
• Gauteng;
• The Western Cape;
• Durban, Pietermaritzburg & Escort;
• East London;
• Port Elizabeth;
• Bloemfontein;
• Kimberly; and
• George.
The newly enlarged entity will seek to aggressively grow its already substantial combined
customer base of more than 19,000 business and SME customers and will boast a
combined turnover (based on historically reported information) of approximately R300
million per annum.
Johannesburg
14 November 2022
Sponsor
Questco Corporate Advisory (Pty) Ltd
Date: 14-11-2022 02:00:00
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