The Huge Group is to buy 59% of iTalk Cellular, in a deal worth about R511-million.
The telecommunications group is acquiring iTalk from the Bebinchand Seevnarayan Trust via the delivery of 93 000 000 ordinary shares in Huge at an issue price of 550 cents per share.
iTalk is a cellular service provider holding an MTN license and focuses mainly on the consumer and SME space.
It is also a national business, operating predominantly from kwaZulu-Natal where it has four outlets, and a head office in Durban. It has three outlets in Cape Town and three in Gauteng.
iTalk sells both directly through iTalk Direct and through a reseller distribution channel that includes dealers that operate on a "store within a store" concept.
The directors of Huge have identified a number of growth opportunities within the telecommunications market and iTalk fits with its vision of leveraging the Huge brand and increasing its points of presence throughout South Africa.