Huge Telecom eyes approval of Connectnet and Sainet acquisition
17 February 2017
Huge Telecom is hoping to get approval for its acquisition of Connectnet, and its subsidiary Sainet, very soon, non-executive director Zunaid Bulbulia told MyBroadband.
It announced its agreement with shareholders to acquire Connectnet for R275 million in September 2016.
The shareholders include CNET Empowerment, DataWireless, DM Holdco, Unwire, and Stephanus Marius Oberholzer.
Bulbulia said the Huge Group pursued the acquisition of Connectnet for about a year and it is a transformative deal for the company.
“It significantly changes our profile from being a small player to becoming a decent-size, second-tier telco operator,” said Bulbulia.
“It takes our profit after tax from R20 to R60 [million].”
Bulbulia said there would be big announcements in the coming weeks, depending on when the deal was finalised.
“One of the main reasons I left MTN is that this was an opportunity to create the next wave – and we’re playing in that space… with [small and medium enterprises].”
“We hope to build this boutique business of SME connectivity.”
In addition to voice, data, and fintech products, they may expand their product portfolio “by quite a bit” if plans fall into place.
“I think we could become a mid-cap stock relatively quickly,” said Bulbulia.
“I’m very excited about what we’ve already done and intend to do. I’ve taken equity in the company.”