AltX-listed investment holding company Huge Group on Monday said it planned to raise R20-million to finance the company’s current rapid growth, as well as to pay a settlement to MTN.
Huge tabled a rights offer of 20-million shares to qualifying shareholders at a price of 100c a share.
This followed the conclusion of the prolonged dispute between telecommunications giant MTN and Huge last week after the parties agreed to a settlement of R10-million.
In 2011, MTN instituted action against Huge Group subsidiary, Huge Telecom, for the payment of R30-million, in addition to interest and the cost of the lawsuit.
The agreement, signalling the “full and final settlement” of all claims MTN may have against Huge Group and its subsidiaries, had been signed between Huge Telecom, Huge Mobile and MTN.
Huge Telecom had until September 15 to pay the settlement.