Shortly after concluding the acquisition of telecommunications service provider Connectnet and its wholly owned subsidiary, Internet service provider Sainet, JSE-listed Huge Group has now entered into exclusive discussions for a new, yet-to-be-disclosed potential acquisition.
In a cautionary announcement issued on Monday, the investment holding company said the potential strategic acquisition, if pursued, would constitute, on an aggregated basis, a category 2 transaction.
A category 2 transaction under the JSE is a transaction where the consideration-to-market capitalisation and dilution percentage ratio is between 5% and 30%.
Huge, enlarged by Connectnet and Sainet Internet, is focused on connectivity, mobile payments and financial technology, with expected organic growth set to be bolstered through acquisitions.