EOH has bought for R1.77 million the 30% of EOH Western Cape it did not already own.
The sellers are the directors of EOH Western Cape, who will receive a total of R360 000 in cash and R1.41 million in EOH shares issued at R2.35 a share.
EOH says the deal allows it to remove minority shareholders and simplify the group structure.
It adds that it has provided the JSE with written confirmation from independent assessors Merchant Sponsors and Fisher Hoffman PKF (Jhb) that the terms of the deal are fair and reasonable to EOH`s shareholders.
EOH Western Cape, formed through the amalgamation of two software companies in the province, has 42 staff members, including 30 consultants.
Had the deal been concluded on 1 August last year, it would have resulted in EOH achieving earnings per share of 18.3c for the six months to 31 January 2004, instead of the reported 17.98c a share.
Headline earnings would have been 19.44c instead of 19.08c. Net asset value per share, had the acquisition been implemented on 31 January this year, would have amounted to 119.34c instead of the reported 118.06c, while net tangible asset value per share would have been 75.97c instead of 76.54c.
The group is expected to report an increase in earnings when it releases its full-year results later this year.
Share
