Shares in ICT group EOH, declined 35% on Thursday prompting the group to issue a voluntary announcement to calm shareholders.
Having traded as high as R170 a year ago, EOH lost R23.88, to trade at R45 by close on the JSE.
The company has recently faced allegations of government tender irregularity, and while it did not give any reason for the dramatic collapse in its share price on Thursday, it issued the following statement:
Our businesses continue to focus on providing value to our clients through the provision of our technology solutions, knowledge and skills. The breadth of our offerings, the depth of the skills of our people and the diversity across the Group are our greatest assets, and provide the Group with a high degree of resilience.
On the mergers and acquisitions front, the Group is actively engaging with businesses that will enhance our offerings in the digitalisation, open source and cyber-security domains. These engagements are at varying stages in the deal cycle, and the Group will make the relevant announcements as they reach final transaction close.
The Group has also reached agreement with the former shareholders of Grid Control Technologies Proprietary Limited, Forensic Data Analysts Proprietary Limited and Investigative Software Solutions Proprietary Limited, to unwind the transaction effective 31 October 2017.
EOH remains committed to its purpose of being an ethical and relevant force for good in society, ensuring that all our business is conducted with integrity, transparency, and the highest moral standards. EOH would therefore like to reassure the market that the business remains strong, with a great leadership team and strong fundamentals.