EOH unveils R1-billion BEE deal

EOH and prospective black-owned equity partner Lebashe have amended their planned empowerment deal.

Lebashe will now invest R1-billion in the JSE-listed technology services group, up from R250-million. A previously proposed R3-billion debt facility from Lebashe “will no longer be necessary”, EOH said on Monday.

The group said in March that it would introduce Lebashe Investment Group as a strategic empowerment partner. “EOH believes Lebashe’s long-term commitment of becoming a significant equity investor aligns Lebashe’s interests with those of EOH’s current and future shareholders,” it said.

The finalisation of the deal is subject to regulatory and shareholder approval.

EOH chairman Asher Bohbot said in a statement: “With this major transaction, EOH is enhancing its competitive positioning while underpinning our unrivalled commitment to economic transformation, both in real equity terms and human capital development.”

Lebashe is an established 100% black-owned investment holding company with interests in the South African financial and technology sectors.

The deal will take EOH’s black shareholding to above 50%, the group said in the statement.

“The signing of the deal represents an important milestone, not just in EOH’s life but for the technology sector’s transformation. The amended deal structure will significantly enhance EOH’s BEE credentials, while providing growth capital that will benefit the group in the long term,” said outgoing CEO Holdings Zunaid Mayet.

Mayet, who is set to take the reins at new EOH subsidiary Nextec, will be replaced as group CEO by former MTN Group vice president Stephen van Coller in September.  — © 2018 NewsCentral Media