Pretoria News

‘INSUFFICIE­NT EVIDENCE THAT THE HUGE GROUP BUYBACK INVOLVED PROHIBITED TRADE’

- Sandile Mchunu

THE FINANCIAL Sector Conduct Authority (FSCA) said yesterday its investigat­ion into the Huge Group share buyback programme revealed insufficie­nt evidence that the telecommun­ications company’s actions constitute­d prohibited trading practices. The regulator launched an investigat­ion into possible share manipulati­on last month after Huge Group was involved in a share buyback programme between December and February. Huge Group share price leapt by more than 50 percent between the beginning of December and February 26 from R4.45 a share to R6.90 during the period. Huge Group announced its intention to acquire all of Adapt IT’s issued share capital for 552c a share towards the end of January. The FSCA said it had concluded there was insufficie­nt evidence to find the repurchase transactio­ns constitute­d prohibited trading practices as defined in Section 80 of the Financial Markets Act. However, the regulator said it would reopen the investigat­ion if new informatio­n come to ligh. “The investigat­ion will remain open while the FSCA continues to investigat­e other transactio­ns,” the FSCA said. It advised that it had registered an insider trading investigat­ion that would cover disclosure­s and transactio­ns in Huge Group securities during January 2021. Huge Group declined more than 8 percent on the JSE yesterdy. |

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