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Seacom to accumulate EOH telecoms property for R145-million


Seacom CEO Oliver Fortuin

Seacom has agreed to purchase two companies from JSE-listed EOH Holdings, Network Solutions (EOH-NS) and Hymax, for R144.9-million.

The proceeds from the sale, web of prices, will primarily be used to scale back EOH debt additional because the IT providers group continues with its plan to deleverage its stability sheet.

“EOH-NS and Hymax have vast experience in the delivery of wholesale and managed service solutions for the networking and voice segments of the telecommunications industry. EOH-NS and Hymax are also strategic and essential partners to a variety of enterprise clients covering multiple verticals across the private and public sectors,” EOH stated in a press release on Thursday outlining the small print of the settlement with Seacom.

Seacom CEO Oliver Fortuin stated: “The acquisition of EOH-NS and Hymax forms part of Seacom’s ambitious growth strategy that will transform the business into a converged telecoms provider across Africa. By expanding our on-network capabilities and reach with this acquisition, and the acquisition of Hirani Telecom and Africell Uganda’s infrastructure, Seacom aims to provide customers with comprehensive, enterprise-grade ICT solutions and quality connectivity.”

EOH CEO Stephen van Coller stated the sale of the companies is in step with its focused disposals technique, which incorporates the sale of property which can be capital intensive.

“In support of this, and due to EOH’s current capital constraints relative to the mobile network operators, and as the group prioritises creating a fit-for-purpose capital structure, we have looked to ensure that EOH-NS and Hymax can continue investing in world-class infrastructure and maintain their service excellence.”

Conditions

The transaction is topic to a number of circumstances, together with the unconditional approval of the competitors authorities.

Seacom will make an upfront cost to EOH of R115.9-million to safe the property, representing 80% of the enterprise worth, upon deal shut. The remaining cash might be held in escrow for 12 months as safety for the cost of any guarantee and indemnity claims. Fifty p.c of this retention quantity might be launched after six months, assuming no claims are made.

The worth of the consolidated web property of EOH-NS and Hymax at 31 July 2021 was R70.5-million. The normalised revenue after tax of the companies got here to R4.7-million for the monetary 12 months ended 31 July 2021.

EOH shares have been quoted up 4.3% at 9.45am in Johannesburg at R6.30 apiece.  – © 2022 NewsCentral Media

Now learn: EOH shares climb on turnaround progress



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