Photo by: Bloomberg
AltX-listed investment holding company Huge Group on Thursday said it had paid the R10-million settlement amount owed to telecommunications company MTN and that all legal action instituted by MTN against the group would be withdrawn.
This comes after Huge announced last month that it would raise R20-million to finance the group’s growth, as well as to pay the MTN settlement, following an agreement by Huge Telecom, Huge Mobile and MTN to settle a prolonged dispute.
MTN had instituted legal action against Huge Group subsidiary, Huge Telecom, in 2011, seeking the payment of R30-million, in addition to interest and the cost of the lawsuit.
“With the settlement of the dispute, which had been the main remaining area of uncertainty, and management’s continued focus on the new business model, the board’s view is that a solid foundation has been laid in order to grow the business,” the company noted.