EOH exceeds its R1bn disposal target for 2019
The group is busy selling off assets to reduce its debt burden, and is continuing to deal with the fall out of corporate governance issues
Technology group EOH said on Friday it had exceeded its R1bn disposal target for 2019, as it seeks to reduce debt and slim down a business recently hit by corporate governance issues.
EOH said it had agreed to sell Dental Information Systems (Denis) to AfroCentric to R250m, the latest disposal by a group that lost a major contract with US software giant Microsoft earlier in 2019.
As of its year to end-July, the company had gross debt of about R3.17bn, roughly equivalent to its market capitalisation at the time.
In February the company had hired law firm ENSafrica (ENS) to review all its large, historical licensing contracts with the state.
It said in October, when it released its results, that the ENS investigation was 80% complete, and that suspicious transactions to the value of R1.2bn had been identified.
Denis, together with its subsidiaries was acquired by EOH in 2012 to provide the group with health-care technology capability and dental claims risk management as well as dental insurance intellectual property.
The company’s share price was up 3.67% to R12.70 as of 9.50am on Friday, paring its year-to-date loss to 59.21%.