JSE-listed Huge Group says it has signed an agreement to buy 100% of the issued share capital of Centracom, for R81.6 million.
Huge Telecom, the principal operating subsidiary of Huge Group, provides communications services to corporate organisations and residential customers in South Africa.
Centracom offers connectivity through DSL, Diginet, Fibre, LTE and Wireless and aggregates its connectivity from a number of networks into its MPLS core, allowing it to offer cost-effective pricing through economies of scale.
Huge said that its proposed acquisition of Centracom is expected to result in an increase of 20% in its customer base to more than 13,000 customers, and an increase of more than 50% in Huge’s number of billed minutes.
As at 28 February 2015, Centracom’s net asset value was R2.08 million, it
generated profit after tax of R4.38 million and cash flow from operations of R8.68 million.