The company’s shares extended losses for the fifth straight day, falling 10.41percent to R17.47 after the group said the multinational technology giant Microsoft had still not officially provided it with any reasons for the cancellation of two contracts last week. EOH's stock has fallen 34.59percent in five days, slashing the company's market capitalisation to the current R3.08billion.
Two weeks ago EOH reported that Microsoft had notified its subsidiary EOH Mthombo that it was planning to terminate the company’s Channel Partner Network agreement within 30days.
EOH said the cancellation would hit its profits by R10million, sending the shares into a downward spiral that saw them closing 30 percent lower.
However, the shares recovered 15percent on Friday after the group announced that it was working with Microsoft in a bid to understand the concerns and rationale for the action. EOH has been a Microsoft partner for the past 20 years and is the largest local partner by skills.