Information and communication technology services firm EOH has sold its remaining 30% stake in Construction Computer Software (CCS) for R143-million and returned the remaining shares of open-source software company LSD, estimated to be worth R96-million, back to the sellers to settle all outstanding obligations.
The disposals are in line with its strategic intent of reducing debt and improving liquidity.
German firm RIB Software had requested an acceleration of the call option to buy the remaining 30% of the issued ordinary share capital of CCS. The acceleration of the call option will add to EOH’s deleveraging programme, while giving RIB complete control over the business and allowing greater flexibility and autonomy as it navigates the current uncertainty in the global economy.
In July 2019, EOH Mthombo sold 70% of its shares in CCS to RIB. The remaining 30% shareholding in CCS was retained as EOH planned to participate in the growth of CCS through RIB’s broader distribution and development network.
EOH and CCS had also, at the time, entered into a reciprocal put and call option in terms of a shareholders’ agreement for the disposal of the remaining 30% of the issued ordinary share capital of CCS.
Meanwhile, EOH Mthombo acquired LSD, which specialises in open source technologies, in December 2017.
On April 17, EOH Mthombo entered into a settlement agreement with the initial sellers in terms of which EOH Mthombo has agreed to transfer all of its shares in LSD to the initial sellers as full and final settlement of EOH’s outstanding obligations, estimated at R96-million. The settlement agreement amicably cancels the initial acquisition agreement and relieves EOH of its obligations in this regard.
EOH and LSD are committed to ensuring that all customers of EOH and LSD continue to receive the various services offered by LSD. As such, a service-level agreement between the two parties is being finalised.
"The LSD team have delivered fantastic value to our clients over the past three years and they have confirmed their committment to ensuring that services provided to EOH’s customers are not disrupted or negatively affected," EOH CEO Stephen van Coller says.