EOH Holdings has announced its amended black economic empowerment (BEE) transaction, which will see investment company Lebashe invest R1 billion of new equity in EOH.
Both parties have signed final agreements. This means EOH is set to become one of the largest majority black-owned technology companies on the continent, with an effective black shareholding in excess of 50%.
The technology and knowledge services provider says the transaction underlines EOH's commitment to transformation and strengthens its competitive positioning in the market.
Zunaid Mayet, incumbent CEO of EOH Holdings, says: "The signing of the deal represents an important milestone, not just in EOH's life but for the technology sector's transformation. The amended deal structure will significantly enhance EOH's BEE credentials, while providing growth capital that will benefit the group in the long-term."
Lebashe is an established 100% black-owned investment holding company with interests in the South African financial and technology sectors.
EOH and Lebashe first announced a strategic partnership in March. EOH says both parties now believe their objectives would be best served by a significant equity injection, which will see Lebashe utilise its own financial resources to subscribe for the new shares.
Lebashe's equity investment, which was initially proposed to be R250 million, will increase to R1 billion, which means the previously proposed R3 billion debt facility offered by Lebashe to EOH will no longer be necessary.
EOH believes Lebashe's long-term commitment to becoming a significant equity investor aligns Lebashe's interests with those of EOH's current and future shareholders.
The finalisation of the deal is subject to regulatory and shareholder approval.