EOH issues cautionary as stock slips further
EOH told investors on Tuesday to be cautious when trading its shares while it looks into its past dealings with the state. The stock has been battered over concerns about the company’s dealings with the government. The share was trading 15.8% lower at R14.71 on Tuesday morning, the worst level in about eight years, following a report by TechCentral that Microsoft’s decision to cut ties with the company is linked to a tip-off about a contract with a government department. The Johannesburg-based news website said the US IT giant’s move was related to an anonymous complaint to the US Securities and Exchange Commission (SEC) about a R120m software deal between EOH Mthombo and the department of defence. EOH, which is headed by Stephen van Coller, has contracted ENSafrica to look into its bids for state projects over the past five years, including that deal. The company said shareholders will be provided with responses to media coverage “and advised of developments as appropriate, subject...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.