EOH Mthombo sells Data World Group interests for R101m

18th October 2019 By: Marleny Arnoldi - Deputy Editor Online

JSE-listed information and communication technology (ICT) service provider EOH has announced the sale of its interest in Data World, Xcallibre and Evaluations Enhance Property Appraisals (EEPA) – together Data World Group – for R101.8-million.

EOH Mthombo, the EOH unit that has been implicated in dubious payments, will sell Data World to Terra Analytics, the JSE-listed company said late on Thursday.

Data World is an ICT company that provides geospatial systems, land administration systems and other software solutions to public sector clients.

Technology provider Xcallibre offers data capturing and processing solutions, while EEPA provides property intelligence solutions around property valuations and appraisals, consulting, development and project management services.

EOH stated the transaction was in line with its debt restructuring strategy, which included disposing businesses that had limited synergies with EOH.

The company remains under sales and margin pressure as a result of governance issues and slowdown of the economy.

“The group continues to focus on building a more appropriate capital structure and has already realised more than R400-million of cash from its debtors’ book and approximately R566-million from the sale of assets between February 1 and July 31,” EOH said in September.

EOH has admitted to about R1-billion in fraudulent transactions with government departments, including overbilling and ghost contracts. ICT-focused news organisation ITWeb previously reported that EOH Mthombo would be closed down in two years.