HUGE GROUP LIMITED - General Repurchase of Ordinary Shares

General Repurchase of Ordinary Shares

HUGE GROUP LIMITED
(Registration number 2006/023587/06)
Share code: HUG           ISIN: ZAE000102042
(“Huge” or “the Group” or “the Company”)


GENERAL REPURCHASE OF ORDINARY SHARES


Shareholders are advised that a subsidiary company of the Company, Huge Telecom (Pty)
Ltd (HugeTel), has acquired ordinary securities under a general authority (the Authority)
granted by shareholders of the Company to the Company at the annual general meeting
held on 12 July 2013. The Authority is limited to 20% of the ordinary shares of the
Company in issue. On 18 December 2013, HugeTel acquired ordinary securities of the
Company, equating to 8.11% of the total securities of the Company in issue at the date of
the Authority. The price paid for the ordinary securities was 55 cents and a total of
8 154 700 ordinary securities (the Shares) were acquired for a total value of
R4 511 766.19 (the Repurchase). The Shares were acquired utilising existing cash on
hand within the Group.

Following the Repurchase, the Company or any subsidiary company of the Company may
still acquire 11 947 799 ordinary shares in terms of the Authority, being 11.89% of the
issued share capital of the Company. The directors of Huge, after considering the effect of
the Repurchase are of the opinion that, for a period of 12 months following the date of this
announcement:
-      the Company and the Group will be able, in the ordinary course of business, to repay
       its debts;
-      that the assets of the Company and the Group will be in excess of the liabilities of the
       Company and the Group; and
-      the Company and the Group's share capital and reserves will be adequate for
       ordinary business purposes; and
-      the Company and the Group will have sufficient working capital for ordinary business
       purposes.

FINANCIAL EFFECTS OF THE REPURCHASE

The unaudited pro forma financial effects (the Financial Effects) as set out below have
been prepared to assist shareholders of Huge in assessing the cumulative impact of the
Repurchase on the earnings per share and tangible net asset value per share of the
Company as at, and for the six months ended, 31 August 2013.

These Financial Effects have been prepared for illustrative purposes and because of their
nature, may not fairly present Huge?s financial position or financial performance after the
Repurchase.

The directors are responsible for the preparation of the Financial Effects, which have not
been reviewed by the Company's auditors.

The Company did comply with the requirements of paragraph 5.72 of the JSE Limited's
Listings Requirements before and at the time of entering the market to execute the
Repurchase.

Unaudited Interim Results                      Before the       After the           %
                                               Repurchase      Repurchase      change
                                                   (cents)         (cents)
Basic earnings per share                              4.11            4.52        10.1
Headline earnings per share                           6.07            6.68        10.1
Diluted earnings per share                            4.11            4.52        10.1
Diluted headline earnings per share                   6.07            6.68        10.1
Net asset value per share                           238.63          257.06         7.7
Net tangible asset value per share                  (8.81)         (15.26)        73.2
Number of shares in issue after
deducting treasury shares ('000)                    89 255          81 100       (9.1)

NOTES AND ASSUMPTIONS

-    The figures set out in the “Before the Repurchase” column above have been
     extracted from the Company's unaudited interim results for the 6 months ended 31
     August 2013 (the Interim Results).
-    The figures set out in the “After the Repurchase” column above reflect the Financial
     Effects of the Repurchase on the Interim Results.
-    The Repurchase is assumed to have been implemented on 1 March 2013 for
     earnings and headline earnings per share purposes and on 31 August 2013 for net
     asset and tangible asset value per share purposes.
-    It is assumed that the Repurchase was funded out of available cash resources of the
     Company with an after tax interest cost of 9% per annum.

The Shares have been acquired by HugeTel and an application will be made for the
delisting and cancellation of all shares held by HugeTel and any other subsidiary company
of the Company in excess of 10% of the ordinary shares in issue. The application for
delisting will be made during January 2014. The treasury shares in issue post the
application for delisting will be 10 051 250.

Johannesburg
20 December 2013


Designated Advisor
Arcay Moela Sponsors Proprietary Limited

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