Van Coller ‘mulls option’ of putting EOH up for sale

Stephen van Coller

EOH Holdings CEO Stephen van Coller is considering a sale of the corruption-tainted IT services firm after returning the group to profitability, according to people fMicroamiliar with the matter.

The former Absa Group and MTN Group executive is seeking advice on how to price the company, said the people, who asked not to be identified as the plan isn’t public. No final decisions have been made, and options other than a disposal could still be considered, they said.

“We are exploring all opportunities to maximise value for shareholders,” Van Coller said in an e-mailed response to questions on the matter. “Now that we are turning a profit, this has opened up many opportunities for shareholders.”

The shares were trading down 2.5% at R5.44 as of 3.49pm.

The deliberations come almost four years after the CEO was appointed to try and turn around Johannesburg-based EOH, which later emerged to have been previously involved in a series of government-related corruption scandals that came to light after Microsoft severed ties in early 2019.

The turbulence has put pressure on the stock, which has tumbled 86% since 2018, valuing EOH at R952-million. That’s even after reporting a return to positive earnings per share in the six months through January.

Van Coller has overseen a mass departure of executives, including the founders, and the company said last year it would look to sue former directors for more than R6-billion.


EOH has also sold more than 80 entities over the past 30 months, reducing gross debt from R4.1-billion to R1.65-billion, Van Coller said on Wednesday. A further R500-million is expected to flow into company coffers over the next six months from disposals, he said.

The meagre market valuation of the company is pushing Van Coller and the board to look at options including the potential sale, said the people. The CEO may see the company perform better as a private entity, they said.

Shareholders “need to guide the board as to what they want us to do in the next growth phase”, the CEO said.  — (c) 2022 Bloomberg LP