Technology firm EOH says it has concluded agreements to dispose of its Network Solutions (EOH-NS) business and the entire issued share capital of Hymax, both of which currently operate under the iOCO division, to telecommunications provider Seacom, for R144.9 million.
“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 said in a statement on Thursday (7 April).
EOH pointed out that it has embarked on a targeted disposals strategy over the past two years which includes assets that are capital intensive.
“In support of this and due to EOH’s current capital constraints, relative to the Mobile Network Operators (MNOs), and as the group prioritises creating a fit-for-purpose capital structure, EOH has looked to ensure that EOH-NS and Hymax can continue investing in world-class infrastructure and maintain their service excellence.”
The proceeds of the transaction, net of costs, will primarily be applied to reduce EOH debt further, the group said.
The value of the consolidated net assets of EOH-NS and Hymax as at the end of July 2021 was at R70,448,221, while the normalised profit after tax amounted to R4,656,894 for the year ended 31 July 2021.