EOH declines on shareholders’ concerns
Analysts point to reports about bribery links that spooked investors
EOH has fallen 17.6% since last Thursday, when shareholder votes at its annual general meeting indicated major discontent. Analysts said the selloff was compounded by a report from Africa News 24-7, which is controlled by businessman Kenny Kunene and former Sunday Independent editor Steve Motale, which claimed that EOH staff were implicated in a bribery case. Business Report later ran the same story, but both publications removed their articles as they were deemed false. At the meeting, 15.4% of shareholders present voted against CEO Zunaid Mayet’s appointment as a director. At least a quarter of shareholders voted against six other appointments. Two audit committee members received similar opposition, while EOH’s remuneration policy was approved by just 55.8% of shareholders and many investors said EOH should not issue more shares. Peter Takaendesa, a portfolio manager at EOH-shareholder Mergence Investment Managers, said he voted against the remuneration policy as it did not incen...