Scepticism around EOH rejig plan
The technology group plans to split in two, but it still has to convince investors that good governance has been restored
With its market rating hammered to a 4.5 price:earnings ratio, the once high-flying EOH is pinning its hopes on a rejig of its corporate structure to restore investor confidence. It faces a huge uphill battle. Under the beleaguered technology group’s master plan, next month it will be divided into two independent business units roughly the same size in terms of revenue. One unit under the EOH brand will house traditional ICT operations and the other, under a new brand, Nextec, will house, as EOH puts it, "specialised solutions for high-growth industries". In a big management change, Nextec will be headed by current EOH group CEO Zunaid Mayet. In the wings, apparently, is a new group CEO hyped as "highly regarded with a solid track record and a strong background in corporate finance, investment banking and technology". Quite who this is, nobody knows yet. Casparus Treurnicht, an analyst at Gryphon Asset Management, is unimpressed by the restructuring. "Splitting EOH into two units do...
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.