EOH Holdings plans to sell a further R1-billion of non-core businesses in 2020 as it reorganises and reduces debt.
EOH will structure operations into three units and sell assets that don’t fit with the revised setup, the Johannesburg-based company’s CEO, Stephen van Coller, said by phone. The firm has already sold 15 assets generating about R750-million, he said.
“We managed to strike a new deal with the banks last week, where 75% of sales goes to the banks and the other 25% will be used to grow the business,” said Van Coller. “Two years from now, the business will have gross debt of less than R1.5-billion.”
Van Coller, a former vice president of MTN Group and head of Absa Group’s investment banking unit, was named CEO in July last year, tasked with EOH’s turnaround after allegations of mismanagement.
Microsoft cancelled a contract with EOH in February following anonymous complaints. EOH has blacklisted 50 companies from doing business with it after an investigation into previous corrupt dealings.
EOH dropped 1.8% in Johannesburg as of 9.32am. The stock has plunged 59% this year. — (c) 2019 Bloomberg LP