EOH chief executive officer Stephen van Coller on Friday moved to allay stakeholder jitters after yet another tumultuous week for the ICT firm – in which its share price came under renewed pressure.
Van Coller wrote an open letter after Microsoft terminated partner agreement with subsidiary, EOH Mthombo. The company said the potential loss of the contract would hurt profit by about R10 million.
EOH last year hired Van Coller, a former executive at wireless carrier MTN Group and lender Absa Group, to try and shake off reputational concerns after the company was linked to questionable government contracts.
But last month, state-owned power utility Eskom Holdings SOC Ltd. published allegations that its former chief procurement officer and other senior officials were involved in acts of misconduct that involved EOH, Bloomberg reported.
The technology company said later the same week that both of Eskom’s allegations have been fully investigated and that EOH wasn’t implicated in any wrongdoing.
EOH has hired a legal firm to carry out an internal investigation, according to van Coller.
Shares in the company showed resilience in afternoon trade on Friday, adding 17.5% to R19.98.
In his letter on Friday, van Coller provided his personal view on current market perceptions, an also gave an update on ‘future proofing the business’.
EOH Stakeholder Letter by on Scribd