Why doubts linger despite EOH statement and share surge
The technology company initiates an internal probe into subsidiary
EOH was one of the top-performing shares on the JSE on Friday, closing 14.6% higher after issuing a lengthy statement detailing steps the technology company has taken to improve its severely dented reputation. EOH, headed by Stephen van Coller, said it has initiated an internal investigation into its subsidiary, EOH Mthombo’s channel partner business unit, after receiving a 30-day cancellation notice from Microsoft early last week. Microsoft wants to cancel a channel partner agreement with EOH Mthombo that allows the technology company to directly resell Microsoft’s licences and products. EOH’s share price plummeted as much as 34% to its lowest levels in eight years on Tuesday on the news of the cancellation. Microsoft did not disclose its reasons for the cancellation. On Friday, EOH again did not provide reasons why Microsoft wants to end its relationship with the company. It only said that its internal investigation will be supported by law firm ENSafrica and hinted that it is mak...
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