EOH said on Friday that it had sold off another non-core asset as it deleverages its balance sheet and boosts liquidity. Picture: Karen Sandison/African News Agency(ANA)
TECHNOLOGY firm EOH said on Friday that it had sold off another non-core asset as it deleverages its balance sheet and boosts liquidity.
EOH subsidiary, EOH Mthombo Proprietary, has sold Information Services companies to Bachique 842 Proprietary, subject to EOH shareholder approval, for the base purchase price of R417 000 000, based on an enterprise value of R445 000 000.
Bachique 842 is a subsidiary of LR Africa Holdings.
Information Services provides credit checks, background screening and big data, analytics and technology in South Africa.
EOH chief executive, Stephen van Coller said, “This transaction is in line with our strategy of disposing of a targeted group of IP companies as part of the group’s deleveraging processes and represents a significant milestone in the implementation of these processes.”
He said the achievement of a more sustainable capital structure would allow the group flexibility to execute on its long-term growth strategy.
EOH, which is trying to turn its fortunes around since a corruption scandal, for the financial year 2021 generated an operating profit of R147 million following a whopping loss of R1.3 billion in 2020.
Its gross debt balance was at around R2 billion, down from R2.4 billion in 2020, which Van Coller is determined to whittle down.
philippa.larkin@inl.co.za
BUSINESS REPORT ONLINE
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