Newly-listed Huge Group buys LCR firm for R80m

Telecommunications services firm Huge Group, which listed on the JSE on August 8, announced on Tuesday that it had bought least-cost routing firm Centracell, for R80-million in shares and cash.

The deal was expected to grow Huge’s revenue base from R300-million a year to R500-milliom a year, and would position the group as the fifth-biggest service provider in the local cellular least-cost routing industry, it said.

Huge would pay R58,4-million in cash, and the balance through the issue of 6,7-million shares, at a price of R3,20 a share.

The deal was subject to approval from South Africa’s competition authorities.

Huge’s stock leapt by 7,81% on the news, to trade at R3,45 by 15:51.

By Matthew Hill