EOH has received unanimous shareholder approval to raise up to R600 million through a rights issue.
The JSE-listed tech group held an extraordinary general meeting yesterday, during which shareholders supported the cash-raising exercise, which will see existing investors buy additional company shares.
EOH first announced plans to raise up to R600 million in October, saying the cash will be used to settle part of the company’s debt.
It will now proceed to raise R500 million through a rights issue, and an additional R100 million will come through the group’s partner, Lebashe Investment Group.
“The unanimous vote in favour of the rights issue clearly demonstrates shareholders’ belief in the strategy as set by the EOH board and management team,” says board chairperson Andrew Mthembu.
“The funds raised will be used to settle legacy debts and clear the way for the group to pursue its growth strategy.”
EOH CEO Stephen van Coller added: “We are grateful as a board and management team that shareholders have unanimously agreed to pursue the rights issue, and for the support they have shown for our strategy.
“We look forward to executing our growth strategy unencumbered by legacy issues and debts, after completion of the rights issue early next year.”
The move comes as the company is increasing its efforts to reduce debt. EOH has been battling with debt for some time, but in the past two years, it has been fulfilling its obligations to lenders.
Share