JSE-listed telecommunications company Huge Group on Tuesday warned shareholders that it is in discussions about a strategic acquisition, cautioning that the deal is big enough to require their approval if management decides to pursue it.
“Although no formal agreement or offer is yet in place, the board of directors of Huge is supportive of the proposed acquisition,” the company said in a statement.
“The successful conclusion of the proposed acquisition may have a material effect on the price of the company’s securities. Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a further announcement is made,” it said.
Huge Group’s share price was last quoted at R3,50, unchanged on Friday’s close.
In the past year, the counter has appreciated by 106%. In the past month alone, it has added 44%.
Earlier in April, the company, which is led by CEO James Herbst, said its board had resolved to resume paying dividends to shareholders. It said, too, that it expected revenue for its 2015 financial year to be marginally higher than in 2014. — © 2015 NewsCentral Media