EOH shareholders approve R1bn BEE deal
IT WEB / 19 SEPTEMBER 2018 - 15.04 /STAFF REPORTER
EOH is set to become majority black-owned following shareholder approval of its empowerment transaction.
In a statement issued this morning, the IT services company says following the announcement of the terms of its R1 billion strategic partnership and BEE transaction with Lebashe in July, EOH's shareholders voted overwhelmingly in favour of the transaction at the special general meeting held yesterday.
In July, EOH announced the appointment of Stephen van Coller as CEO of the group.
It notes the approval of the transaction sees the group affirm its commitment to transformation. EOH will now have an effective black shareholding well above 50% and is set to become the largest technology company in Africa that is majority black-owned. This will improve the group's attractiveness as an empowered service provider for its clients in both the private and public sectors, it adds.
The transaction also strengthens the group's balance sheet, with Lebashe injecting R1 billion of equity, providing EOH with the capital resources to continue its growth and development well into the future, the company says.
Following the announcement of EOH's new strategy in March, the group completed its reconfiguration into two distinct businesses in August.
Each of these businesses operates with a unique brand and identity, business model, and go-to-market strategy. The ICT business now operates under the EOH brand with Rob Godlonton as CEO. The specialised solutions businesses for high-growth industries will operate under the newly launched NEXTEC brand, with Zunaid Mayet as CEO.
In July, EOH announced the appointment of Stephen van Coller as CEO of the group. Van Coller, who is 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, the company notes.
EOH also recently reconfigured its board, appointing two new independent, non-executive directors, Ismail Mamoojee and Jesmane Boegenpoel.
The JSE-listed company points out that the reconfiguration of its business has brought greater levels of independence to its board and strengthened its leadership team. The strategic partnership and BEE transaction with Lebashe is the final step in positioning the group on a robust platform and setting it on a path for its next wave of growth, it notes.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER