DURBAN – EOH rose more than 5 percent on the JSE on Tuesday after the IT group said it would sell more than R1.5 billion worth of non-core businesses in order to reduce its debt and deleverage its balance sheet.
EOH chief financial officer Megan Pydigadu said the disposal was necessary to reduce debt of R3bn.
“We have set ourselves in reducing this debt as we continue to clean up the business. We have sold businesses where we had limited competitive advantage or scale,” Pydigadu said.
The group said it realised about R523 million in sales in the financial year to the end of July. It also sold a 70 percent stake in CCS to strategic partner RIB for R444m.
In July, EOH repaid its bridge facility of R250m taken out during the year.