Investment holding company Lebashe Investment Group will invest a further R100-million in JSE-listed information and communications technology services provider EOH.
It already holds 13.06% of EOH's issued share capital and its investment is a clear vote of confidence in EOH's future and strategy, the investment company said.
EOH’s recently released positive annual results for the year ended July 31 reflect a major milestone in the successful execution of EOH’s turnaround strategy. EOH generated a total operating profit of R282-million for the financial year, following a total operating profit of R147-million for the prior year, which is an increase of 92%, Lebashe said.
“As announced at the recent results presentation, EOH is now proceeding with an equity capital raise of up to R600-million. The net proceeds of the capital raise will enable it to restructure its balance sheet, which will result in a fit for purpose capital structure allowing the company to focus on its well-defined growth strategy,” the investment group noted.
“We are thrilled by Lebashe’s additional investment into EOH. Lebashe has been an incredibly supportive partner throughout the group’s challenging turnaround journey. It is pleasing to see our strategic partnership deepening as we shift gears to growth,” EOH CEO Stephen van Coller said.
“I am thrilled by the trust that Lebashe continues to show in our board, management and our staff through this additional investment, and I would like to take this opportunity to thank them for their unwavering support over our challenging four-year turnaround period,” he added.
Lebashe's support had been invaluable throughout EOH's journey and Van Coller assured the company that EOH intended to focus its attention on its role as an end-to-end technology services integrator and aggregator.
“I look forward to an exciting shared future as we continually strive to accelerate and improve technology transformation roadmaps,” Van Coller said.