Huge Group's attempt to acquire iTalk cost the company about R3-million, even though the purchase was unsuccessful.
Since November 2007, Huge has been involved in talks to acquire 59% of iTalk Cellular.
However, MTN Group exercised its rights of pre-emption to acquire the outstanding shares, which was upheld by the Competition Commission on 11 November 2008.
Although Huge opposed the MTN transaction and applied to the Competition Tribunal for leave to intervene in the merrger proceedings, this was dismissed and the merger between MTN and iTalk was unconditionally approved.
According to a statement from Huge, the costs of the attempted acquisition of iTalk are estimated at approximately R3-million and will be written off in the 2009 financial year. The deposit of R5-million, plus interest, has been refunded to Huge.