R1bn transaction makes EOH more than 50% black-owned

sizwe.dlamini@inl.co.za EOH’S shareholders voted in favour of the R1 billion strategic partnership and black economic empowerment transaction with Lebashe in July at the special general meeting held on Tuesday, which is set to make the tech firm majority black-owned.

The technology service provider will now have an effective black shareholding well above 50 percent and the transaction also strengthens the group’s balance sheet with Lebashe injecting R1bn of equity.

In July this year, EOH announced the appointment of Stephen van Coller as chief executive of the group.

“Van Coller a well-known and respected executive took office at the beginning of this month, and brings his impeccable track-record and extensive experience in financial services and high tech industries to the group,” EOH said in a statement.

EOH also recently reconfigured its board, appointing two new independent, non-executive directors, Ismail Mamoojee and Jesmane Boegenpoel, lending itself to higher levels of independence on the board.

The company’s share price has suffered some rather unsavoury palpitations over the last two years after a reported fall from grace, fuelled by wrongdoing related to government tenders, forced the sale of directors’ shareholdings and alleged fake news stories.

On top of that, Asher Bohbot, who was instrumental in building up the company from the ground, stepped down as chief executive in June 2017, just days before the nightmare started.

EOH said recently that it expected revenue for the year to July to increase by 8 percent to about R16.3bn and normalised earnings before interest, taxes, depreciation, and amortisation from continuing operations to decrease 15 percent and 25 percent to between R1.71bn and R1.938bn.

The company is due to release its annual financial results on October 3.