Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Crypto is becoming a ‘practical payment method’ in South Africa

      24 June 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      Tesla shares soar after first robo-taxi rides hit the road

      24 June 2025

      ‘System offline’ scourge to end, says Schreiber – but industry must pay

      23 June 2025

      Why the spectrum gold rush may soon be over

      23 June 2025
    • World

      Mira Murati’s Thinking Machines hits $10-billion valuation

      24 June 2025

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TechCentral Nexus S0E3: Behind Takealot’s revenue surge

      23 June 2025

      TCS | South Africa’s Sociable wants to make social media social again

      23 June 2025

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      South Africa risks being left behind as stablecoins reshape global finance

      6 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » IT services » EOH offloads CCS stake for R444-million

    EOH offloads CCS stake for R444-million

    By Staff Reporter2 July 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    EOH Holdings has sold 70% of subsidiary Construction Computer Software (CCS) for R444.4-million.

    Wholly owned subsidiary EOH Mthombo entered into a share purchase agreement with RIB, a subsidiary of German listed RIB Software, in terms of which EOH will sell the stake in CCS.

    The deal was struck at 8.5 times earnings before interest, tax, depreciation and amortisation, or Ebitda, and the companies have entered into a reciprocal “put/call option” for the disposal of the remaining 30% at the same multiple applied to 31 December 2022’s adjusted Ebitda.

    The proceeds of this transaction will go a long way to creating a more appropriate capital structure and will be applied mainly to a reduction of the EOH’s debt

    Ninety percent of the purchase consideration is payable in cash on closing, following fulfilment or waiving of all conditions precedent, EOH said in a statement on Tuesday. The remaining 10% will be held back by RIB as security for any shortfall in warranted financial results or claims against EOH Mthombo.

    The balance due will be payable to EOH Mthombo in cash by 31 July 2021.

    CCS provides enterprise software solutions for the construction and engineering industries. RIB offers digitisation services to the construction industry, with its software technology combined with a cloud platform approach to software services. RIB is operational in about 30 countries, has more than half a million licensees and is focused on growing that number to two million over the next two years.

    ‘Will participate’

    “CCS’s access to RIB’s broad development network, international business analysts and development teams will greatly enhance CCS’s growth strategy,” the group said. “Through EOH’s remaining 30% holding of CCS, EOH will participate in the company’s growth trajectory.”

    The put/call arrangement provides an “effective exit” for EOH after December 2022, it said. “Potential also exists to grow the RIB relationship to a broader partnership with EOH ICT in cloud and development services.”

    EOH described the deal as a “significant milestone in its strategy to align with key partners which enable the scaling up of unique software businesses identified within the group’s fold”.

    “It is also a crucial step forward for EOH’s IP division and RIB is the right partner to unlock CCS’s full potential, enabling both growth and internationalisation.”

    It said the deal is in line with its strategy to reorganise the group into an investment holding company and strength its capital structure.

    “EOH management, at the interim results, stated that it would unlock R1-billion in cash through strategic partnerships and targeted disposals in order to reduce the group’s debt. The proceeds of this transaction will go a long way to creating a more appropriate capital structure and will be applied mainly to a reduction of the EOH’s debt and, to a lesser extent, for working capital requirements.”  — © 2019 NewsCentral Media



    CCS EOH EOH Mthombo top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBitcoin erases most of last week’s monster gains
    Next Article VALR to offer ether-rand trading

    Related Posts

    Blue Label beats Naspers, Vodacom to lead JSE tech rankings

    5 May 2025

    iOCO on the mend as cost rationalisation pays off

    2 April 2025

    Big management shake-up at iOCO as co-CEOs appointed

    13 February 2025
    Company News

    Communication costs exploding? Telviva has a fix for UK-SA teams

    24 June 2025

    IoT connectivity management in South Africa – expert insights

    23 June 2025

    Let’s reimagine Joburg using the power of tech, data and AI

    23 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.