{"id":254815,"date":"2018-06-28T08:18:26","date_gmt":"2018-06-28T06:18:26","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=254815"},"modified":"2018-06-28T08:18:26","modified_gmt":"2018-06-28T06:18:26","slug":"eoh-says-it-could-list-split-units-separately","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/it-services\/254815\/eoh-says-it-could-list-split-units-separately\/","title":{"rendered":"EOH says it could list split units separately"},"content":{"rendered":"
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EOH Holdings Ltd, the South African information, communications and technology firm that is splitting into two divisions, will consider spinning off one of the units and trading the shares separately.<\/p>\n

The Johannesburg-based company plans to lump its ICT businesses under the EOH brand while hiving off the subsidiary that provides specialized solutions for high-growth industries such as healthcare and water sanitation under the new NEXTEC brand, EOH said in a statement on Wednesday.<\/p>\n

The holding company will oversee both divisions once the separation is completed from Aug. 1, it said.<\/p>\n

\u201cThe split presents an opportunity to list the units separately,\u201d Zunaid Mayet, who has relinquished his role as chief executive officer of EOH to head NEXTEC, said in an interview. \u201cIf it makes commercial sense and will unlock value for shareholders it will be an avenue that we will explore.\u201d<\/p>\n

EOH\u2019s shares extended gains to trade 5.6% higher at R26.62 as of 4:17 p.m. in Johannesburg. That pares its drop this year to 60%, among the five worst performers in the FTSE\/JSE Africa All Share Index.<\/p>\n

As part of the company revamp, EOH also reorganized its board to remove some executives while adding non-executive directors and appointed law firm, ENSafrica to improve governance and better screen new business partners.<\/p>\n

The restructuring of EOH is a move in the right direction, said Ron Klipin, a senior analyst at Cratos Capital Pty Ltd. in Johannesburg.<\/p>\n

\u201cA separate listing could provide the market with two focused entities which have different operating models,\u201d he said. \u201cOne could get a better see-through value with more transparency.\u201d<\/p>\n

Organic Growth<\/strong><\/p>\n

NEXTEC will consider acquisitions while EOH will focus on expanding its existing business, the CEO said. \u201cThere are opportunities for mergers and acquisitions in the different sectors, as well as room for organic growth,\u201d said Mayet.<\/p>\n

The new unit will be funded by the holding structure while the businesses still fall under one group. The company is not considering a rights issue to raise funds at the moment, said Mayet.<\/p>\n

EOH further plans to consolidate an international business that spans the Middle East, Turkey and 29 African countries, under the holding structure. Currently 90% of its business comes from South Africa where it operates in a R230 billion ($17 billion) industry.<\/p>\n

\u201cWe currently have about 8% market share,\u201d Mayet said. \u201cThere is a lot of headroom to also grow in South Africa still.\u201d<\/p>\n

\"\"<\/a><\/p>\n

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Read: Major management shifts at EOH as CEO steps down<\/a><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

EOH Holdings Ltd, the South African information, communications and technology firm that is splitting into two divisions, will consider spinning off one of the units and trading the shares separately.<\/p>\n","protected":false},"author":59,"featured_media":230995,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-254815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-it-services"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/254815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=254815"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/254815\/revisions"}],"predecessor-version":[{"id":254823,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/254815\/revisions\/254823"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/230995"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=254815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=254815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=254815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}