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    TechCentralTechCentral
    Home » IT services » EOH shares plunge 34% after Microsoft termination

    EOH shares plunge 34% after Microsoft termination

    By Duncan McLeod12 February 2019
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    EOH Holdings CEO Stephen van Coller

    Shares in EOH Holdings plunged by as much as 34.3% in Johannesburg on Tuesday morning after news emerged late on Monday that Microsoft had terminated two partner agreements with the JSE-listed technology services group.

    TechCentral reported that Microsoft served notice on EOH Mthombo on Friday that it plans to terminate the company’s Licensing Solution Provider agreement and its Microsoft Partner Network agreement.

    EOH holds the Microsoft agreements through its EOH Mthombo subsidiary. They expire 30 days from the date of the notice of termination.

    We are engaging with them to understand their decision

    An EOH delegation, led by CEO Stephen van Coller, is due to meet with Microsoft South Africa later on Tuesday to discuss the developments. More clarity is likely to emerge after that meeting.

    A Microsoft spokeswoman declined to say why the agreements had been terminated.

    EOH Holdings head of investor relations Debbie Millar confirmed that the agreements had been terminated by Microsoft South Africa but said that the group has not been given reasons by the software giant.

    “We are engaging with them to understand their decision,” Millar said.  — (c) 2019 NewsCentral Media



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