EOH shares stage a comeback despite uncertainties
Stock hits best level in about two months after being battered by governance concerns
Despite uncertainty about the outcome of a forensic investigation into the company’s dealings with the state, EOH’s shares have staged a comeback since the start of trade on Thursday.
The stock, which had remained close to the R20 mark for about a month, broke out of that range on Thursday, surging 13.1% through the day. It then rallied 6.1% in early trade on Friday to reach a high of R23.72, the best level in about two months.
EOH’s shares have been battered by governance concerns. Despite the rally, they remain about 87% below their all-time high of R180, according to Iress data.
Uncertainties remain. The information technology group said on Wednesday it will publish the findings of an investigation into its past dealings with the state on July 16.
The company, under a new management team led by CEO Stephen van Coller, asked ENSafrica to investigate its public-sector contracts earlier in 2019.
One such contract is said to be behind Microsoft’s decision to cut ties with EOH.
The group said on Wednesday that ENSafrica had submitted its forensic report and its recommendations to the board, which “has assessed the findings” and was in talks with “the stakeholders concerned where appropriate”.
EOH said on Tuesday that it would sell 70% of its Construction Computer Software (CCS) business for R444.4m to Germany’s RIB Software.