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- EOH says the proceeds from the sale of the four businesses have been used to pay down debt.
- The technology company has been selling off some non-core assets in a bid to streamline operations.
- The transaction has been hailed as a 'significant milestone' in achieving sustainable capital restructure.
Technology group EOH has concluded the sale of four information services businesses managed by its subsidiary EOH Mthombo, in a R422-million transaction with Bachique 842.
The companies that have been offloaded are Hoonar Tekwurks Consulting, Managed Integrity Evaluation, Xpert Decision Systems, and Zenaptix. The businesses offer services including data engineering and risk management, background screening and vetting, and software development.
EOH said the proceeds of the transaction have been used to reduce the group's R1.2 billion bridge facility repayable on 1 April 2023.
"The disposal of information services represents a significant milestone towards the achievement of a more sustainable capital structure that will allow EOH flexibility to execute on its long-term growth strategy," the company said in a statement.
The company in November 2020 sold off its traffic law enforcement services and systems business for R211 million, while digital platform Sybrin fetched R334 million.
EOH - whose business dealings with government departments featured prominently during sessions of the State Capture Inquiry - has been on the path of turning around its operations and addressing corruption within its ranks.
The State Capture report issued in April praised EOH for cooperating with the commission and taking proactive measures to remedy the historic acts of corruption within its ranks. The company was described as a "unique case".
Corruption involving the awarding of lucrative public sector contracts was largely linked to EOH Mthombo.
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