EOH BEE Deal
Johannesburg, 30 July 2018 – EOH Holdings is pleased to announce its amended Black Economic Empowerment (“BEE”) transaction, which will see Lebashe now invest R1bn of new equity into EOH.
With both parties having signed final agreements, EOH is set to become one of the largest majority black owned technology companies on the continent, with an effective black shareholding in excess of 50%. The transaction underlines EOH’s commitment to transformation and strengthens its competitive positioning in the market.
Zunaid Mayet, incumbent CEO of EOH Holdings said: “The signing of the deal represents an important milestone, not just in EOH’s life but for the technology sector’s transformation. The amended deal structure will significantly enhance EOH’s BEE credentials, while providing growth capital that will benefit the Group in the long-term.”
Lebashe is an established 100% black-owned investment holding company with interests in the South African financial and technology sectors.
Following its initial announcement in March 2018 introducing Lebashe as its strategic partner, both EOH and Lebashe believe their objectives would be best served by a significant equity injection, which will see Lebashe utilise its own financial resources to subscribe for the new shares.
Lebashe’s equity investment, which was initially proposed to be R250m, will increase to R1bn, which also means that the previously proposed R3bn debt facility offered by Lebashe to EOH will no longer be necessary. EOH believes Lebashe’s long-term commitment of becoming a significant equity investor aligns Lebashe’s interests with those of EOH’s current and future shareholders.
The finalisation of the deal is subject to regulatory and shareholder approval.
EOH Chairman Asher Bohbot said: “With this major transaction, EOH is enhancing its competitive positioning while underpinning our unrivalled commitment to economic transformation, both in real equity terms and human capital development.”
EOH is a proudly South African business and the largest technology services organisation in Africa. The JSE- listed group has strong empowerment credentials and with its 13 000-strong workforce in South Africa, is characterised by excellent delivery capability, great people and a strong culture.
EOH provides a broad range of technology solutions and innovation to clients in South Africa and internationally, covering many aspects of society and the economy, and geared towards supporting the developmental agenda of our country.
In keeping with its purpose, EOH launched the “EOH Youth Job Creation Initiative” five years ago, which to date, has resulted in the creation of over 35 000 jobs for our youth.
About Lebashe Investment Group
Lebashe is an established, 100% black-owned investment holding company with a variety of interests in the South African financial and technology sectors holding interests in, inter alia, Capitec Bank Holdings Limited, Aluwani Capital Partners Proprietary Limited, 4 Africa Exchange Proprietary Limited as well as various other entities operating within its chosen sectors. Furthermore, Lebashe shares common management and ownership with entities holding significant investments in a variety of African infrastructure, energy and technology assets.