EOH finalises R1bn empowerment deal with Lebashe
EOH has revised its BEE deal with investment group Lebashe, which at a stroke will bump up its black shareholding to more than 50%, from 30.2% now. This will be crucial to further business with the public sector, despite the fact that its contracts with the state have drawn allegations of corrupt practices over the past 18 months. It also makes the company the largest listed empowered IT group in SA, which, said incumbent CEO Zunaid Mayet, "massively" strengthens its "competitive positioning across all market segments". A tie-up with Lebashe, which has been fighting its own PR battle with UDM leader Bantu Holomisa over its involvement in BEE deals concluded with the PIC, was first announced in March. But revised terms will see Lebashe buy shares in EOH to the value of R1bn at a 10% discount to the prevailing average.
Initially it proposed an equity investment of R250m and a R3bn debt facility. This falls away. Lebashe chairman Tshepo Mahloele said that EOH’s growth "aspiration...
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