Huge Telecom has disposed of 1 176 ordinary shares of $N1 (one Namibian dollar) each in the share capital of Namibian company TelePassport Communications. The sale, which represents 49% of the entire issued share capital of TelePassport, is to Luigi’s Trust.
The trust was formed for the benefit of Anton Daniel Potgieter, a related party to Huge, for a purchase consideration of R4,9-million.
The purchase consideration will be settled by the purchaser transferring 3,5-million Huge Group ordinary shares with a par value of R0.0001 each to Huge Telecom on the closing date of the sale agreement.
TelePassport is based in Windhoek, Namibia. It was formed in 2004 by Huge Telecom and local high profile residents of Namibia with a view to growing Huge Telecom`s market share outside the borders of South Africa.
However, the group has decided to dispose of the asset because Namibia is a small market for the provision of managed telecommunications services and is roughly equal in size to half of Huge Telecom`s Kwa-Zulu Natal office.
Namibia also has a different regulatory environment as far as telecommunications services are concerned making the management thereof different to the group’s South Africa operation.