JSE-listed investment holding company Huge Group has concluded a memorandum of agreement (MoA) with shareholders to acquire telecommunications service provider ConnectNet for R275-million.
The shareholders comprise CNET, DataWireless, DM Holdco, Unwire and Stephanus Marius Oberholzer.
ConnectNet has entered into a five-year term loan agreement with a long-term senior debt provider.
The principal amount outstanding under the agreement is R142.9-million, resulting in an enterprise value of R417.9-million.
According to the terms of the MoA, 45% of the initial purchase consideration will be paid by Huge to the shareholders in cash, raised through the issue of shares to certain subscribers already identified by Huge.
Huge is required to settle the cash portion of the initial purchase consideration by October 3.
Edited by: Samantha Herbst
Creamer Media Deputy Editor
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