Huge Group, the telecommunications company, is considering as many as three acquisitions, with one of them potentially worth as much as US$100m, as it seeks to play a leading role in the consolidation of the industry in South Africa.
The company announced it has reached an agreement with two financial advisory companies, Forefront Capital Markets and another unnamed company, which will act as its financial adviser as it tries to raise as much as USD100m. This is “for the purpose of purchasing another telecoms company for approximately $100m”.
“The conclusion of agreements with two leading international providers of financial advisory services places Huge in a position to raise capital,” the company said.
Speaking to TechCentral, CEO James Herbst stated that until now, the market has been consolidating at the top end, with deals like the proposed acquisition by Vodacom of Neotel making headlines.
“We think the market will consolidate at the mid-level to bottom, too,” he said. “There are significant opportunities out there. We have looked at a number of potential acquisitions.”
However, he said that Huge Group needs the ability to raise capital in order to be taken seriously when holding talks with third parties, which the agreements announced on Thursday allow it to do.