HUG - Huge Group Limited - Further cautionary announcement

HUG - Huge Group Limited - Further cautionary announcement                      
HUGE GROUP LIMITED                                                              
(formerly Vanquish Fund Managers Limited)                                       
(Registration number 2006/023587/06)                                            
Share code: HUG     ISIN: ZAE000102042                                          
("Huge" or "the company")                                                       
FURTHER CAUTIONARY ANNOUNCEMENT                                                 
1.   INTRODUCTION                                                               
Shareholders are referred to the previous cautionary announcement dated 16      
August 2007 and are advised that Huge has entered into discussions that may or  
may not result in a proposed transaction ("proposed transaction").              
2.   FUNDING                                                                    
Huge will fund the proposed transaction by way of a fresh issue of 93 000 000   
ordinary shares in Huge, which ordinary shares the counter-party to the proposed
transaction has agreed is acceptable in full payment of the purchase            
consideration.                                                                  
In order to maintain an orderly market for the ordinary shares of Huge, the     
counter party has agreed that it will grant Huge the right to acquire the Huge  
ordinary shares issued and delivered to the counter-party as payment for the    
purchase consideration in the event that the counter-party wishes to dispose of 
such shares ("the Call Option").                                                
In addition, Huge Group will grant the counter-party the right but not the      
obligation to sell its shares in Huge to the Company ("the Put Option"), which  
Huge ordinary shares the Company is obliged to acquire.                         
In order to provide security for the payment of the purchase price of the Huge  
ordinary shares forming part of the Call Option and Put Option referred to      
above, Huge has obtained debt funding and equity funding from two leading       
financial institutions in South Africa.  The debt component of the funding      
amounts to R261.5mn and the equity component amounts to R80mn.  As such the     
proposed transaction will be fully funded.                                      
3.   DOCUMENTATION                                                              
In terms of the Listings Requirements of the JSE Limited, the proposed          
transaction will be regarded as a Category 1 transaction that will require      
shareholder approval by way of a circular to be sent to shareholders.           
Shareholders will be advised on SENS within due course.                         
4.   RENEWAL OF CAUTIONARY                                                      
Shareholders are advised that the discussions referred to above are at an       
advanced stage, and should they be successful, may have an effect on the price  
at which Huge ordinary shares trade.                                            
Accordingly, shareholders are advised to continue to exercise caution when      
dealing in their Huge ordinary shares.                                          
Woodmead                                                                        
9 November 2007                                                                 
Designated advisor                                                              
Arcay Moela Sponsors (Pty) Limited                                              
Date: 09/11/2007 07:00:06 Supplied by www.sharenet.co.za                     
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