EOH shares jump on asset sales
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Shares in EOH have surged following an announcement from the company that it plans to raise R1 billion through asset sales as a way to reduce debt. EOH plans to bring the firm’s debt-to earnings-ratio down to 1-1.5 times. As part of the disposal process, EOH has re-evaluated its assets and impaired them by around R1.7 billion. This has weighed on the group's financials with the company reporting a loss of R3.3 billion for the half-year.
The firm has described the past 6 months as ‘extremely challenging’ as it’s been the subject of ongoing governance allegations, compounded by Microsoft cancelling its channel partner agreement. This has led to value destruction for shareholder. EOH, however, says that it's making meaningful progress in addressing legacy governance issues and future proofing the business.
EOH CEO Stephen van Coller joins Business Day TV to talk about the company’s interim results and also takes a look at how it now marks the dawn of a new era for the company.
The firm has described the past 6 months as ‘extremely challenging’ as it’s been the subject of ongoing governance allegations, compounded by Microsoft cancelling its channel partner agreement. This has led to value destruction for shareholder. EOH, however, says that it's making meaningful progress in addressing legacy governance issues and future proofing the business.
EOH CEO Stephen van Coller joins Business Day TV to talk about the company’s interim results and also takes a look at how it now marks the dawn of a new era for the company.
