EOH in reconfigured corporate structure

South Africa – Johannesburg – 21 June 2019 – EOH Holdings website. EOH Holdings fell 1.81% to R8.69 yesterday despite the under fire information and technology group’s assuring the market that it had steadied the ship Picture: Karen Sandison/African News Agency(ANA)
JOHANNESBURG – EOH Holdings fell 1.81percent to R8.69 yesterday despite the under fire information and technology group’s assuring the market that it had steadied the ship.

The company told the market in an update that it had managed to keep afloat and reconfigured its corporate structure since the suspicious transactions scandal that whipped off billions off its market cap last year.

EOH said it had configured its business into three key pillars, namely iOCO, NEXTEC and IP, but in future the company would look to flatten the structure and integrate into a single business unit.

The company’s share price has fallen almost 30percent in a year to date after an ENSafrica investigation uncovered eight questionable contracted public sector contracts.

But EOH said the once-off advisory costs related to the continued ENSafrica investigation, disposals and reorganisation of the business remained a drag on cash flow.

Source: iol.co.za