Technology group EOH has been given the green light by the Competition Commission for a R144.9 million sale of its telecom assets to Seacom.
This follows EOH announcement in April that it was selling two of its businesses to telecoms firm Seacom as it continues to pare down its debt, as part of a turnaround strategy after a corruption scandal in 2018 involving senior directors.
At the time the company said it had completed its turnaround strategy, paying off R360m in debt since the end of January.
In a statement, the group said yesterday: “EOH Holdings Limited is pleased to announce that iOCO the information and communications technology (ICT) division of EOH, has received approval by the Competition Commission to conclude an agreement to divest of its Network Solutions (EOH-NS) and Hymax businesses to Seacom which owns Africa’s largest network of ICT infrastructure".
EOH group chief executive Stephen van Coller said: “We are extremely pleased that the Competition Commission has approved this deal with no conditions. The conclusion of this deal enables the EOH Group to continue on its journey of creating a fit-for-purpose capital structure.”
EOH said it would continue its business engagements with Seacom and looked forward to unlocking opportunities for future collaboration.
Existing customers would also not be impacted by this transition.
"EOH anticipates a positive outcome from this deal for its staff and customers, whereby EOH will continue to provide connectivity solutions and enhanced offerings with the backing of Seacom, a recognised global brand," it said.
BUSINESS REPORT