JSE-listed technology services group EOH Holdings said on Wednesday it had reconfigured its board and appointed CEOs of its two future subsidiaries, as it proceeds with a reconfiguration of its business model.
Current EOH Holdings CEO Zunaid Mayet has been appointed chief executive of Nextec, while current executive director Rob Godlington will assume the leadership of the subsidiary EOH brand.
EOH Holdings had said in March it intended to split its operations into two independent operations, with Nextec focusing on pursuing new "high-growth" industries requiring technical specialisation, while EOH will continue with its end-to-end ICT offering.
The two subsidiaries will have their own specific brand identities, with the EOH brand currently generating about 55% of group revenue, while Nextec generates 45%.
The creation of the two independent businesses is expected to be completed by August 1.
EOH Holdings maintains the split will allow better management and simplification of business process, as well as provide for greater oversight and governance.
EOH Holdings said in a statement on Wednesday it was yet to appoint a CEO for the EOH Holdings structure, but had reconfigured its board.
Changes include the appointment of Ismail Mamoojee as chairman of the group’s audit committee, and Jesmane Boggenpoel as chairwoman of the group’s governance and risk committee.
EOH Holdings’s share price has been under sustained pressure since 2017, when media reports suggested irregularities in the group’s public-sector contracts. EOH Holdings denied this, appointing an independent investigation, which found no wrongdoing.
EOH Holdings’s share price, however, had fallen 58.79% last year, and is 60.59% lower so far this year.
At 10.30am EOH Holdings’s share price was up 4.17% to R26.25.