EOH shares extend slide as Microsoft serves more termination notices
Shares in EOH fell as much as 7.5% on the news in morning trading
EOH shares slumped on the JSE, pushing the loss of value since the end of 2018 to about R3bn, after confirming that US technology giant Microsoft has officially terminated its contract with the scandal-tainted company. EOH's share price started tumbling when allegations of corruption involving a SA Social Security Agency contract surfaced in early 2017. Since then more similar allegations also came to light. On Monday, EOH announced that a number of its subsidiaries received more cancellation notices from Microsoft Ireland on 12 March. EOH’s share price fell as much as 7.5% to R13 by midday on Monday before paring losses to close at R13.52. This has pushed the slide since the end of 2018 to just under 55%, shaving off about R3bn from the company’s market capitalisation.
Microsoft SA served EOH's subsidiary, EOH Mthombo with a cancellation notice in February after an anonymous corruption complaint. EOH hired a forensics team to look into the matter and has since suspended or re...
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