EOH CEO Zunaid Mayet is relinquishing his role as group CEO to take the reins at newly created subsidiary Nextec, the JSE-listed IT services group said in a statement on Wednesday before markets opened.
The announcement comes in the same week that EOH’s share price has come under significant renewed pressure, falling 9.7% on Monday and a further 4.6% on Tuesday. It is now trading at levels last seen in 2011.
In March, EOH announced that it would split its business into two new operating entities, one under the EOH brand focusing on legacy ICT operations, and a new business — which will be called Nextec, it announced on Wednesday — to focus on high-growth opportunities. Rob Godlonton will head the new EOH subsidiary.
The creation of the two independent businesses will be completed by 1 August, EOH said.
The EOH Holdings corporate structure will be responsible for corporate finance, strategy, group reporting, investor relations, risk and compliance. In addition to the growth expected from the two newly created businesses, EOH Holdings will drive growth in the areas of innovation, own intellectual property/software, international business, and emerging technologies, it said.
The board is in the process of finalising the appointment of a new CEO for EOH Holdings. “The appointee is highly regarded, with a solid track record and a strong background in corporate finance, investment banking and technology. Further details on the new CEO will be made available in the coming weeks.”
At the same time, the group said it will “reconfigure” its board of directors. Jesmane Boggenpoel has been named as independent nonexecutive director, chair of the governance and risk committee, and a member of the audit committee, while Ismail Mamoojee has been appointed as an independent nonexecutive director, chair of the audit committee, and member of the governance and risk committee.
The following directors will resign from the EOH Holdings board with effect from 1 July:
- Lucky Khumalo, after serving as a non-executive director;
- Brian Gubbins, who will continue in his executive role in the business;
- Rob Godlonton, who will continue in his executive role in the business;
- Ebrahim Laher, who will continue in his executive role in the business;
- Jehan Mackay, who will continue in his executive role in the business; and
- Johan van Jaarsveld, who will leave the group on 31 July.
At the same time, EOH has provided an update on work done by law firm ENSafrica into governance at the group following media reports about impropriety in some of its public sector dealings, particularly around the CGT Group, an acquisition it has since unwound.
“ENSafrica conducted a review of the commercial activities of the GCT Group and found no evidence implicating EOH of complicity, awareness or condonation of any illicit activity that may or may not have taken place,” EOH said.
“ENSafrica also found that a comprehensive due diligence was conducted prior to the acquisition of GCT and that there was no adverse information regarding GCT at the time. Accordingly, there was no impediment to engaging with GCT.”
ENSafrica has been and will continue to perform an ongoing risk-based, monitoring and oversight role in all of the group’s major public sector bids, contracts and engagements, it added. “ENSafrica has also overseen EOH’s review of all material current public sector contracts to ensure that governance relating to these contracts was adhered to.
“EOH has adopted a checklist that was developed with ENSafrica to further enhance governance and to promote consistency relating to public sector engagements. ENSafrica has worked with the EOH Group to further develop and strengthen its due diligence procedures to ensure that all new business partners are optimally screened to enhance business partner selection.”
Finally, it said the law firm is supporting it with its group regulatory compliance framework and the adoption and implementation of the key principles of ISO 37001: the international standard for anti-bribery management systems. “This ensures that the group is in line with international best practice governance and regulatory compliance standards while meeting local and global requirements.” — (c) 2018 NewsCentral Media