EOH’s new R3bn funding facility from its black empowerment partner will enable the technology group to pay for acquisitions without having to issue fresh shares, says CEO Zunaid Mayet. The company’s acquisition spree in recent years has been funded largely with shares, although analysts say the collapse of its share price – from about R163 at the start of 2017 to R46 on Wednesday – has made that strategy less viable. “We’ve got a new funding war chest, so how we fund transactions will vary from transaction to transaction – it may not be with shares, or it could be a smaller proportion of shares,” Mayet told Business Day on Wednesday. EOH is in the process of splitting its operations in two, with one division retaining the EOH brand and focusing on organic growth, while the other will also target acquisitions. The second unit will launch its own “brand and identity” within coming weeks, Mayet said. The group said earlier in March empowerment firm Lebashe Investment Group would inject...
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