Huge Group Limited, an investment company which provides managed telecoms solutions primarily in South Africa, has reportedly paid MTN South Africa a ZAR10 million (USD910,937) settlement, with all legal action instituted by the mobile operator thereby withdrawn, BusinessTech reports. MTN filed a lawsuit against Huge Group in 2011 demanding ZAR30 million (plus interest) following its acquisition of iTalk Cellular, to which Huge had objected for competition reasons. Earlier this week Huge Group revealed that it raised ZAR20 million in a rights offer, which closed on 5 September 2014, adding that part of the proceeds would be used to ‘satisfy the settlement agreement reached with a major supplier of the group’, while the remainder would fund ‘the rapid growth which the company is experiencing currently.’
TeleGeography notes that in November 2007 Huge Group announced an agreement to acquire iTalk for ZAR511 million. However, in June 2008 MTN SA, which held 41% of iTalk at the time, revealed that it would exercise its pre-emptive rights to buy the rest of the company from the Bebinchand Seevnarayan Trust, effectively outmanoeuvring Huge Group.